The board of TIM Participacoes has approved a loan of €200m to its mobile subsidiary TIM Celular from the European Investment Bank (EIB) .
The approval of the long-term financing agreement was publicised in minutes of a TIM Participacoes board meeting…
The board of TIM Participacoes has approved a loan of €200m to its mobile subsidiary TIM Celular from the European Investment Bank (EIB) .
The approval of the long-term financing agreement was publicised in minutes of a TIM Participacoes board meeting filed with the SEC
TIM Participacoes is majority-owned by TIM Brasil, a Telecom Italia subsidiary.
An EIB spokeswoman said that the agreement had been approved, but not signed yet.
According to information on the EIB’s website, the project would concern 2010-2011 investments in the expansion of coverage and the increase in capacity of TIM Celular’s GSM and UMTS networks in Brazil.
According to the website, the project would promote local economic development and “transfer economic and technological knowledge by supporting a well-established European company diversifying through [Foreign Direct Investment] into Latin America”.
The total cost of the project was said to be €1.65bn.
The EIB describes its role as being to provide long-term finance for investment projects. Its shareholders are the 27 European member states.
