Citigroup and Deutsche Bank sign EKN guaranteed facility with Telefonica
London - February 22, 2010 – Telefonica, S.A. has signed a term loan facility with Citigroup and Deutsche Bank for USD472 million.
Citi and Deutsche Bank acted as Mandated Lead Arrangers.
Deutsche Bank is acting as Facility Agent.
The Facility will finance a commercial contract signed between Telefonica and Ericsson AB for the procurement of 2G and 3G core network equipment and related services by Telefonica Group companies in Europe and Latin America over a two year period.
The facility matures in 2019 and it benefits from a competitive fixed rate provided by AB Svensk Exportkredit ("SEK") and comprehensive insurance cover from Exportkreditnämnden ("EKN"), the Swedish Export Credit Agency.
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.
The company has a significant presence in 25 countries and a customer base that amounts to 268 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.
Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.563.996.485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Tokyo, New York, Lima, Buenos Aires and São Paulo.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,053 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
About Global Transaction Services
Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citi’s Global Transaction Services supports over 65,000 clients. As of the fourth quarter of 2009, it held on average $335 billion in liability balances and $12.1 trillion in assets under custody.