Credit line

Telecom Italia requests a credit line of 3 billion euros with state guarantee

MILAN (Reuters) – Telecom Italia (TIM) has started talks with a pool of banks for a new credit line worth around 3 billion euros ($3.3 billion) which could be partially guaranteed by Italian commercial insurer SACE, three sources familiar with the matter said. .

The indebted former telephony monopoly, hit by multiple rating downgrades after a record annual loss last year, is pushing ahead with plans to reorganize its business by splitting assets.

Telecom Italia has started talks with a pool of banks including UniCredit, BNP Paribas, Credit Agricole and Santander over the credit line deal, the sources said.

Banks was not immediately available for comment.

Under a guarantee scheme used by Italy during the first wave of COVID-19 in 2020 to help companies take on new debt, SACE is authorized to cover up to 80% of the financing.

However, there are doubts whether TIM is eligible to operate such a program, one of the sources said.

News of talks between TIM, SACE and banks over a possible €3 billion loan was first reported by Bloomberg News.

($1 = 0.9220 euros)

(Reporting by Elvira Pollina and Giuseppe Fonte, additional reporting by Stephen Jewkes; editing by Francesca Landini and Emelia Sithole-Matarise)