Eircom said yesterday it was in the process of repaying the final instalment of a €94.5 million loan that was issued by the European Investment Bank in July 1983.

The company, which is currently restructuring debts worth €1.8 billion though a bond issue and refinancing, was due to pay back the outstanding €4.4 million by close of business yesterday.

The loan was part of a funding package Eircom raised through its financing subsidiary ITI to help it pay for digitising the Irish telecom network in the early 1980s.

Eircom owes the bank a further €31.7 million, due for repayment in December 2003. This is the amount outstanding from a loan agreed in 1993 with the bank.

An Eircom spokesman said the company was in the process of repaying the loan. He said the firm would repay the outstanding €31.7 million on the other loan in December, when it is due.

A spokeswoman for the European Investment Bank said it was the bank's policy not to reveal any details of confidential matters regarding corporate loans.

Eircom is also due to pay an additional €56.5 million in September to institutions, following its issue of unsecured debenture stock by ITI in 1988 and 1993.

The company plans to repay the debenture stock from funds drawn down under a new €1.4 billion credit agreement. This will be finalised following Eircom's bond issue, which is due to be priced early next week.

One banking source said Eircom was expected to price its €1 billion equivalent high-yield bond in two parts next Tuesday.

The company is set to price €500 million equivalent of 10- year senior notes to yield 7.25 to 7.50 per cent, and €500 million equivalent of 10-year subordinated notes to yield 8.25 to 8.5 per cent, said the banking source.

The notes are expected to be in both dollars and euros, although no split has been decided - (Additional reporting Reuters)