TNL (Oi) in talks with Bank of China concerning ‘cheap’ ten-year loan

9 Dec 2009

Brazil’s largest telco by subscribers and revenues Telemar Norte Leste (TNL), which offers services under the Oi brand, is in talks with Bank of China concerning a ‘very cheap’ ten-year funding agreement designed to help it free up cash and sign up more customers. Bloomberg quotes Alex Zornig, chief financial officer of Tele Norte Leste Participacoes (TNL’s holding company), as saying the Chinese bank is offering very favourable terms for the accord, although he stopped short of divulging more in terms of the amount of any possible loan or when a deal is expected to be finalised. The CFO added that there were also other options on the table, although he declined to elaborate. It is understood the funding agreement could be used to help TNL increase its subscriber base in the country – especially in the mobile arena.

Brazil, Oi