Oi (Telemar) secures USD300m Chinese loan

23 Mar 2009

Brazil’s largest telecoms operator by subscribers Oi (Telemar) has secured a loan worth USD300 million from China Development Bank, the company said in a statement published last Thursday. It is understood the seven-year loan facility carries an annual interest rate based on the Libor variation plus a spread of 2.5 percentage points per annum, and features a two-year grace period. Earlier this month Oi revealed plans to spend between USD5 billion and USD6 billion in 2009 to expand its presence in the Brazilian telecoms market following the acquisition of Brasil Telecom (BrT). The company says that 60% of the monies will be allocated to fixed line and broadband services and the remainder to its mobile operations. According to TeleGeography’s GlobalComms database, Oi added 8.7 million new customers in 2008 to end the year with a total of 40.4 million. Of the total customer base, 13.9 million were fixed line customers, 24.4 million mobile and two million took one of its broadband packages (including 1.965 million ADSL and 51,000 Oi cable customers).

Brazil, Oi