8 Nov 2019
EUR 93.5 million
Industries and services
Having Brazil as one of its key non-member countries and telecommunications as a focus sector, NIB provides a value-added new loan to Brazilian Embratel.
The Bank has provided a USD 200 million A/B loan to the Brazilian fixed-line telecom operator Empresa Brasileira de Telecomunicações S.A. (Embratel).
Maria Angélica Oliveira Luqueze, Head of Financing and Insurance at Embratel, says that an A/B loan suits Embratel's needs, as the loan structure will benefit the borrower, as it gets access to a large financial package. The B Lenders benefit from sharing the advantages of NIB's status as an international financial institution.
The A Loan totalling USD 50 million has been granted by NIB with a 5-year tenor. The B Loan has been underwritten for the amount of USD 150 million with a 5-year tenor by the commercial banks Société Générale, Santander, Nordea, Natixis, Calyon and BBVA.
Tarja Kylänpää, Senior Director, Head of Asia, Latin America, Africa and Middle East at NIB, explains:
"Brazil is one of the key non-member countries, and telecommunications is an essential sector for our operations. Both contribute to fulfilling our mandate of enhancing competitiveness. A combination of multilateral and commercial bank participation in the A/B loan arrangement will benefit the customer."
Long-term relationships in a frequently changing business environment are crucial for Embratel.
"Our transactions with NIB are a good example of such long-term relationships. We closed a transaction a few years ago which helped a lot structuring this new one," says Ms Oliveira Luqueze.
The financing will be used for Embratel's expansion of its wireless broadband and telecommunications infrastructure in Brazil, using state-of-the-art telecom network technology supplied by Nokia Siemens Networks.
"The expansion of Embratel's infrastructure will not only improve efficiency and coverage of the existing network but also bring new technology solutions for customers," explains Ms Oliveira Luqueze.
Embratel owns the largest telecommunication network in Brazil, comprising fibre-optics, submarine cables and satellites. Being at the forefront of introducing new technologies to the national market, the company offers complete telecommunications solutions for the entire market in the country.
For Nordic telecom equipment manufacturers, Embratel is strategically important as a customer for R&D and other product development. By taking part in the financing, NIB is strengthening the Nordic suppliers' international competitiveness.