Five international financial institutions have arranged a US$750mn credit facility for the financing of telecoms supplies made by Ericsson to Latin American and European subsidiaries of Telefónica Spain. The drawdown of the financing is expected to be finalised in the coming weeks.

Acting as mandated lead arrangers on the buyer’s credit are BBVA, the Bank of Tokyo-Mitsubishi, Mizuho, SEK and Société Générale. The facility is backed by Sweden’s EKN, which provides support under its guarantee programme for export credits.
The loan covers ongoing and future investments of Telefónica in its international network.

“Telefónica has extensive experience in the financing of its imports from various countries by using the respective export credit structures available in the exporting country and thus benefiting from advantageous terms and conditions, including long tenors with amortising profiles,” reads a statement issued by BBVA.

Allen & Overy (Madrid) as well as Advokatfirman Vinge (Stockholm) acted as legal advisors on the facility.