BBVA arranged an EKN-backed financing for Telefónica, S.A.January 26, 2016
BBVA has signed in December 2015 with four other international banks and financial institutions, each acting as Mandated Lead Arranger, a credit facility for USD 750mn for the financing of supplies made by Ericsson AB to Telefónica, S.A., Spain.
Together with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., AB Svensk Exportkredit (SEK) and Société Générale, BBVA arranged a financing for supplies of telecommunication equipment to be provided by the Swedish company Ericsson, AB to European and Latin American subsidiaries of Telefónica, S.A., Spain.
The Loan covers ongoing and future investments of Telefónica in its international network.
The financing is based on a buyer's credit granted to Telefónica, S.A. amounting to USD 750mn and benefiting from an insurance cover from the Swedish Export Credit Agency, EXPORTKREDITNÄMNDEN (EKN) providing support under their guarantee program for export credits. Additionally Telefónica is using the advantages of the export finance program offered by Svensk Exportkredit.
Telefónica has extensive experience in the financing of their 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 amortizing profiles.
Backed by the long-lasting relationships of BBVA and the Mandated Lead Arrangers with Telefónica, the execution of the financing could be finalized within a few weeks.
Allen & Overy, Madrid, as well as Advokatfirman Vinge KB, Stockholm acted as legal advisors.