17 Mar 2009

NIB provides A/B loan to Brazilian Embratel

NIB has provided a new A/B loan to the Brazilian fixed-line telecom operator Empresa Brasileira de Telecomunicações S.A. (Embratel).

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.

“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,” says Johnny Åkerholm, NIB President and CEO.

Embratel is at the forefront when it comes to introducing new technologies to the Brazilian market. 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.

The A/B loan structure will benefit both the borrower, as it gets access to a large financial package, and the B Lenders by sharing the advantages of NIB’s status as an international financial institution.

NIB’s A Loan amounts to USD 50 million with a 5-year tenor. The B Loan will be underwritten in the amount of USD 150 million with a 5-year tenor by the commercial banks Société Générale, Santander, Nordea, Natixis, Calyon and BBVA.

NIB is a multilateral financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.

For further information, please contact

Ms Tarja Kylänpää, Senior Director, Head of Asia, Latin America, Africa and the Middle East, at +358 10 618 0237, tarja.kylanpaa@nib.int

Mr Dimitrijs Alehins, Communications Specialist, at +358 10 618 0296, dimitrijs.alehins@nib.int