Vivo Approves US$360mn Loan from EIB for Network Expansion

The board of Brazil's largest mobile operator Vivo has approved a plan to secure a 250mn-euro (US$360mn) loan from the European Investment Bank (EIB), the company said in a filing with the local securities regulator CVM.

The EIB's terms are 0.6% above the DI overnight rate, running for nine years. The EIB offered Vivo the loan on September 27.

According to the EIB website, Vivo plans to use the funds for the expansion and upgrade of the company's existing mobile network. The project includes the building of a GSM-overlay network and expansion of the existing CDMA network.

Vivo is a joint venture between Spain's Telefonica and Portugal Telecom.

Posted to the site on 29th October 2007