Spanish incumbent Telefonica has secured a US$1bn export credit facility to buy equipment from Swedish manufacturer Ericsson.
The vendor financing is backed by Swedish export credit agencies EKN and SEK.
Societe Generale acted as agent and mandated…
Spanish incumbent Telefonica has secured a US$1bn export credit facility to buy equipment from Swedish manufacturer Ericsson.
The vendor financing is backed by Swedish export credit agencies EKN and SEK.
Societe Generale acted as agent and mandated lead arranger on the facility. The Bank of Tokyo-Mitsubishi UFJ, BNP Paribas and Santander were also mandated lead arrangers.
The 10-year facility will finance the delivery of network equipment and services, which Telefonica will deploy to its operations in various countries.
“Telefonica continues to drive the use of diverse financing instruments, apart from bonds and loans, and to increase its financing deals with export credit agencies for financing equipment,” the company said in a statement.
Last September Telefonica signed a US$1.2bn credit facility with China Development Bank (CDB) and Industrial and Commercial Bank of China to purchase products, although the telco did not disclose the companies it planned to buy from.
Telefonica has previously tapped vendor financing to acquire equipment from Ericsson. In 2010 it secured a US$472m loan from Deutsche Bank and Citigroup that matures in 2019, a portion of which would be used to buy equipment from Ericsson.
