MTS said in a statement on Tuesday it would use the credit facility for general corporate purposes including to finance ongoing operation and capital expenditure programme.

"MTS continues to work on creation of a balanced multi-currency debt profile," it said.

It did not say what margin it will pay for the loan.

In December, MTS’ board approved the issue of two domestic bonds worth a combined 30 billion roubles (US$912 million) scheduled for the first quarter of 2009.

The company has said its strategy was to replace dollar loans with rouble ones during the global liquidity shortage and the devaluation of the rouble that has raised dollar-denominated debt servicing costs.

In June and October, MTS issued domestic bonds for 30 billion roubles.

The carrier, part of services conglomerate Sistema , has more than 90 million subscribers in Russia, Ukraine, Turkmenistan, Uzbekistan, Armenia and Belarus.

As of 30 September 2008, MTS’ total debt stood at US$3.2 billion.