Chinese Bank Funding Huawei Sales to Mexico
Published on: 28th Jul 2011
Note -- this news article is more than a year old.
By: Ian Mansfield
Nextel Mexico has secured a USD375 million bank loan from the China Development Bank (CDB) to fund 3G network infrastructure from Huawei.
The financing has a final maturity of ten years, with a three year drawdown period and a seven year repayment term. In February 2011, NII Holdings - which owns Nextel Mexico - signed agreements with Huawei to provide end-to-end WCDMA solutions to build Nextel Mexico's 3G network.
"We are extremely pleased that Nextel Mexico secured this funding, which is consistent with our strategy of obtaining long-term financing with attractive rates at the market level," said Gokul Hemmady, executive vice president and chief financial officer of NII Holdings. "We believe this financing places us in a strong position to evolve our business while pursuing our growth initiatives in Mexico. This agreement with CDB further enables Nextel Mexico to take a significant step forward in executing its 3G strategy," he added.