© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS / Yara Nardi / File Photo
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) that could be partly guaranteed by Italy’s trade insurer SACE, three sources familiar with the matter said .
The debt-laden former phone monopoly, hit by multiple rating downgrades following a record annual loss last year, is pressing ahead with plans to reorganize its business by spinning off assets.
Telecom Italia (BIT 🙂 has initiated talks with a pool of banks, including UniCredit, BNP Paribas (OTC :), Credit Agricole (OTC 🙂 and Santander (BME 🙂 over the credit line deal, the sources said.
The banks were not immediately available for comment.
Under a guarantee scheme Italy used in the first COVID-19 wave in 2020 to help companies raise new debt, SACE is allowed to cover up to 80% of financing.
However, there are doubts as to whether TIM is eligible to tap such a scheme, one of the sources said.
News about talks between TIM, SACE and banks over a possible 3 billion euro loan was first reported by Bloomberg News.
($ 1 = 0.9220 euros)