Spanish fibre operator Jazztel has raised €60m to finance equipment purchases from Chinese vendor Huawei.
The Madrid-based operator signed the agreement with BBVA, which will pay for network upgrades and new technologies.
Jazztel said that the…
Spanish fibre operator Jazztel has raised €60m to finance equipment purchases from Chinese vendor Huawei.
The Madrid-based operator signed the agreement with BBVA, which will pay for network upgrades and new technologies.
Jazztel said that the financing pact consists of two-year leasing contracts which will be signed with BBVA Renting, which will route the funds.
The agreements are for a minimum of €5m each and each one will have a three-year repayment period and a three-year Euribor swap plus 250 basis points interest rate. Jazztel said the financing allows it to lower its cash expenditure and concentrate its resources on expanding its subscriber base.
“[These] investments will allow Jazztel to increase the coverage, capacity, flexibility and efficiency of its network and, as result, accommodate the growth of its ADSL, VDSL and FTTH customer base, maintaining and increasing the quality and innovation of the services offered and increasing the footprint in which these services can be offered,” the company said in a statement.
Jazztel offers broadband for voice and data traffic, and internet and mobile telephony – via its MVNO – to the residential and corporate markets in Spain. It also provides wholesale access to other operators.
