Polkomtel, the second largest mobile phone operator of Poland, has entered into an agreement to refinance loans totalling 7.95 billion zlotys or US$2.5 billion. The refinancing agreement has allowed to cut borrowing costs by about 100 million zlotys per year, according to a company statement released Friday.

Earlier this year, Polkomtel had said that nearly 11 billion zlotys of outstanding loans was utilized when it was bought out by Zygmunt Solorz-Zak, the Polish billionaire back in 2011. 

According to banking sources who told Reuters, Polkomtel was arranging the new financing into a corporate loan to be able to take advantage of existing market conditions and help in the reduction of the borrowing costs.

The company had engaged the services of PZU, the Polish insurer as well as other Polish financial institutions such as Pekao, Bank Zachodni WBK and PKO as senior mandated lead arrangers that would manage the financing scheme.

Other participating arrangers would be DnB Bank, Nordea, HSBC, BNP Paribas, BRE Bank, Royal Bank of Scotland, Raiffeisen Bank, Bank Millenium, Credit Agricole and Societe Generale.