(Bloomberg) -- Telecom Italia SpA has signed a €1.5 billion ($1.6 billion) bridge loan to cover its refinancing needs until it closes the sale of its network. 

The extra liquidity could reassure investors as the company awaits European regulators’ approval for its as much as €22 billion fixed-line network sale. The former Italian phone monopoly signed a landmark deal last year to sell the grid to KKR & Co. to help bring its debt pile under control. 

BNP Paribas SA, Credit Agricole CIB, Deutsche Bank AG, JPMorgan Chase & Co., Banco Santander SA and Unicredit SpA were bookrunners for the facility, which has an up to 18-month maturity, the Italian telecommunications company said in a statement on Friday.

Read More: Telecom Italia Eyes €1 Billion Asset Sales to Speed Debt Cutting

Telecom Italia shares had slumped last month after investors raised concerns about a higher-than-expected debt forecast for the end of 2024. The stock fell 1.9% to 23 cents in Milan trading on Thursday. Shares have declined 22% so far this year. 

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