Zon secures EUR100 million EIB loan

4 Sep 2009

Portugal’s second largest broadband operator by subscribers, Zon Multimedia has announced that it has secured a EUR100 million (USD142.77 million) loan from the European Investment Bank (EIB) to fund its next generation network (NGN) deployment, Reuters reports. As reported by CommsUpdate on 8 January, the Portuguese government made an EUR800 million credit line available through the EIB for telcos looking to invest in the deployment of NGNs. Zon Chief Financial Officer, Pedro Pereira da Costa, said that the loan ‘gives Zon stability to carry out investments in structuring projects and simultaneously extend the maturity of its debt. With it we will have our financing requirements covered for the next three years. We will cease having the need to do short-term refinancing, which is important in the current environment.’ Zon plans to invest a total of EUR307 million in its NGN deployment. The firm, which is also Portugal’s leading pay-TV provider by subscribers, aims to have connected 2.8 million households to the NGN by the end of 2009, up from 1.3 million at the end of June 2009. Zon has a total net debt of EUR600 million with an average maturity of three years. The EIB loan will have to be repaid after six to ten years.

Portugal, Nos