Oi agrees USD360m loan to expand broadband in Brazil

20 Sep 2007

Brazilian fixed line operator Oi (formerly known as Telemar) says it has agreed a USD360 million loan to expand and update its broadband business, reports BNamericas. Oi’s decision is a response to the growing popularity and ubiquity of the internet and PCs in Brazil. The company’s CFO Jose Luis Salazar told the Estado de S Paulo newspaper that Oi expects Brazil’s broadband coverage to expand 30% this year. The loan, syndicated by a group of international banks including Citigroup and Sumitomo Mitsui Banking Corporation, matures in ten years, carries a two-year grace period and will require Oi to pay annual interest of 0.3% above Japan’s interbank lending rate.

Brazil, Oi