The Japan Bank for International Cooperation (JBIC) will provide a guarantee for a syndicated loan of up to US$300mn which four commercial institutions in Japan, including Mizuho Corporate Bank and the lead arranger, Bank of Tokyo-Mitsubishi UFJ, have provided for Telfonos de Mexico (Telmex).
Proceeds will be used for capital investment undertaken by Telmex to expand its fixed telecommunications network and data communications project. By utilising the guarantee facility, JBIC is looking to supplement and encourage the development of Japanese financial business operations in Mexico. The guarantee will also assist Telmex in securing stable and long-term funds, further cementing its ties with JBIC.
With the Japan-Mexico Economic Partnership Agreement coming into effect in April 2005, a number of Japanese firms, led by automotive and electronics manufacturers, have moved into Mexico.
The provision of this loan, with JBIC’s guarantee facility, will contribute to the development of telecommunications networks, on which the business development of local Japanese affiliates depends.