EIB Approves US$126mn Loan for Movistar Expansion

The European Investment Bank (EIB) has approved a 100mn-euro (US$126mn) loan to mobile operator Movistar Colombia, as part of a financing project for Telefónica units in the Andean region, EIB said in a statement.

EIB first began considering Telefónica's loan application in March this year, saying it would consider loaning up to 180mn euros and no more than 50% of the total investment planned by Telefónica for these units.

In July the EIB authorized a US$51.2mn loan for Movistar Peru and US$51.2mn for Movistar Ecuador.

Telefónica's plan is to expand the GSM networks operated by these three units, increasing coverage in isolated areas and low-income segments. The necessary network expansion is expected to begin this year and extend through 2007.

The loan repayment schedule runs for 12 years.

BNAmericas.com"

Posted to the site on 7th August 2006