The FINANCIAL — Together with Nordea, KfW IPEX-Bank is financing the network expansion of the Brazilian telecommunications enterprise Telemar Norte Leste S.A.. Both banks are providing loans of equal shares totalling about USD 200 million, according to KfW.
The export financing for modern telecommunications equipment and services of the Finnish-German Joint Venture Nokia Siemens Networks has a 10 year term and is covered by Finnish export credit insurance. The relevant agreements were signed at the end of 2011.
Currently fixed and mobile broadband are among the major growth areas of the Brazilian telecommunications infrastructure. In addition, Brazil is presiding over two major sporting events as the host of the next football World Cup in 2014 and the Olympic Games in 2016 taking place in Rio de Janeiro.
As one of the main sponsors of the football World Cup, Telemar is investing with its brand "Oi" more intensively in expanding its own 3G network in order to meet growing demands on the national mobile data network, such as for better interconnection in metropolitan areas overall and in particular during the upcoming major sporting events. The enterprise is relying predominantly on European technology, especially as developed and supplied by NSN – one of the largest European telecommunications infrastructure manufacturers.
KfW IPEX-Bank has maintained business relations with the Brazilian telecommunications firm Telemar ever since its founding in the late 1990s. Most recently KfW IPEX-Bank participated in a USD 500 million financing for the expansion of the telecommunications network.