Vivo secures BRL3bn loan from BNDES to increase coverage

21 Sep 2011

Brazil’s leading mobile operator by subscribers, Vivo Participacoes, has signed a BRL3 billion (USD1.7 billion) loan deal with BNDES development bank to improve its coverage and to build a new data processing centre. Bloomberg writes that Sao Paulo-based Vivo will use the funds to enhance and upgrade its existing network and to develop infrastructure for advanced mobile technologies between now and 2013. Meanwhile, the new data centre is expected to come online in 1H12, according to a statement from the operator.

Shares in Vivo stopped trading on the local bourse in June this year in the wake of a merger with sister company Telecomunicacoes de Sao Paulo (Telesp), also a unit of Spanish giant Telefonica. Shareholders in the two companies have yet to formally approve the merger and a meeting is scheduled for October. In the meantime, Telesp confirmed earlier this month that its board has approved the deal.