Turkcell Secures Export Financing for Ericsson 3G Kit Purchase

Turkish mobile network operator, Turkcell has announced the signing of a US$285 million loan agreement to buy 3G network infrastructure from Ericsson. The Board of Directors said that they have authorised up to US$750 million of export financing for network expenditure.

The financing will be made through Calyon Credit Agricole Bank and Nordea Bank with partial or total guarantee of Swedish Export Credits Guarantee Board and assured from The Swedish Export Credit Corporation. The financing will be unsecured with a cost of approximately 4% - 4.25%, maturity of 5 years, and semiannual payments.

Under the terms of supply agreement, originally announced in March, Ericsson will supply an end-to-end network solution, including a WCDMA/HSPA radio access network, and an IP-over-Ethernet-enabled mobile-backhaul solution based on microwave transmission. Ericsson will also be responsible for a full range of services, including, systems integration, technical support and network build and implementation.

Last November, the company won the largest of the available 3G licenses and is aiming for a launch in the very near future.

Posted to the site on 2nd July 2009