Viva seals $270m vendor financing deal

Kuwait’s third operator signs deal with Huawei to fund network expansion

Tags: Kuwait
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Viva seals $270m vendor financing deal Vendor financing deals are becoming increasingly common as operators seek to expand while avoiding costly bank loans. (Shutterstock)
By  Roger Field Published  May 12, 2010

Viva, the Kuwaiti mobile operation launched by STC in 2008, has signed a five-year, $270 million vendor financing deal Huawei.

Viva, which competes with Zain and Wataniya in Kuwait, said in a statement that the deal would help fund network expansion using the "latest technologies".

Vendor financing deals are becoming increasingly popular as a means for vendors to increase sales and for operators to expand their networks without the need for direct bank loans.

In March, UAE operator Du struck a EUR200 million ($269 million) vendor financing agreement with Nokia Siemens Networks, in a deal backed by Finnvera, a financing company owned by the State of Finland.

In November 2009, Alcatel-Lucent won backing from ONDD, a Belgian export credit insurer, to provide third-party financing for sales to carriers worldwide.

 

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