Mexico's Telemex syndicated loan secures guarantee

Mexican telephone company Telefonos de Mexico (Telemex) has signed a US$300mn syndicated loan arranged via lead arrangers Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank. BBVA also participated in the syndicate and the loan has been guaranteed by the Japan Bank for International Cooperation (JBIC).

The loan will finance the development of a fixed telecommunications infrastructure network, as well as capital investment in an internet and data communication project organised by Telemex.

Japanese-Mexican bilateral investment and trade has been steadily increasing since the two countries signed an economic partnership agreement (EPA) in April 2005.