Brazilian telecoms group Oi has agreed a US$200m ten-year financing package with KfW IPEX Bank and Nordea in order to fund network expansion.
According to a KfW statement, the German bank and Nordea agreed at the end of 2011 to provide loans of equal…
Brazilian telecoms group Oi has agreed a US$200m ten-year financing package with KfW IPEX Bank and Nordea in order to fund network expansion.
According to a KfW statement, the German bank and Nordea agreed at the end of 2011 to provide loans of equal size to Telemar Norte Leste (Telemar), part of Oi. The total value of the loans will be US$200m.
The bank said that the export financing would provide Telemar with funding that the telco would use to invest in telecommunications equipment and to buy the services of European vendor Nokia Siemens Networks (NSN).
In its statement, KfW noted that Telemar was “relying predominantly” on European technology, particularly the technology supplied by NSN.
The bank also said that Telemar is investing in the expansion of its 3G network in order “to meet growing demands on the national mobile data network, such as for better interconnection in metropolitan areas overall and in particular during the upcoming sporting events”. Brazil is hosting the football (soccer) world cup in 2014 and Rio de Janeiro will be the setting for the Olympics in 2016.
