Telecom Italia (TIM) confirmed it has negotiated and signed a bridge facility agreement for €1.5 billion ($1.62bn) with a maturity of up to 18 months.

The telco said the facility is necessary until it completes the sale of its NetCo fixed-line business.

The loan has been underwritten by BNP Paribas, Credit Agricole CIB, Deutsche Bank, J.P. Morgan, Santander, and UniCredit, with the latter also acting as documentation bank and facility agent.

Earlier this year, the Italian government approved Telecom Italia's planned sale of its fixed line network to KKR, worth €22 billion ($23.9bn).

The deal, which has been on the cards for some time, has been supported by Giorgia Meloni's Italian government since 2022, which plans to take a 20 percent stake.

TIM approved the deal without making it conditional on a vote by shareholders, with the board voting 11-3 in favor.

However, the deal still faces a legal challenge from TIM's top investor, Vivendi, which has previously called it "unlawful."

Back in November, French media group Vivendi slammed the agreement, stating that the rights of Telecom Italia's shareholders "have been trampled on."

Vivendi, which owns a 24 percent stake in TIM worth €1.3 billion ($1.4bn), is considering its future with the company.

Earlier this week, TIM said it expects a €1 billion ($1.1bn) payout after it won its 15-year dispute with the Italian government over the liberalization of the telecoms sector.