Viva seals $270m vendor financing deal
Kuwait’s third operator signs deal with Huawei to fund network expansion
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.