Telefonica's Colombia Mobile Unit Asks For $600 Million IDB Loan

BOGOTA -(Dow Jones)- The Colombian mobile unit of Spanish company Telefonica asked for a $600 million loan from the Inter-American Development Bank to refinance its debt and to finance its expansion plans, the company told the securities regulator Wednesday.

German Centeno, the company's communication director, didn't specify when the loan will be disbursed nor did he give details about Telefonica Moviles' debt.

Earlier this year, Alfonso Gomez, chief executive of Telefonica's Colombian unit said it will invest 4 trillion Colombian pesos ($1.79 billion) in Colombia between 2007 and 2010, reflecting vibrant economic growth and strong demand for its services.

The firm plans to upgrade its fixed line, mobile and broadband internet businesses in the Andean country, and will also spend $186 million in 2007 to roll out cable television service, Gomez had said. In 2006, Telefonica bought the state-owned telephone company Colombia Telecomunicaciones for $370 million. Prior to that acquisition, Telefonica was already present in the Andean country through its mobile telephone operator.

-By Diana Delgado, Dow Jones Newswires; 571-600-1980; diana.delgado@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 10th October 2007