MILAN, Italy—Hutchison Whampoa’s Italian third-generation (3G) subsidiary, announced it secured about e4.2 billion (US$3.7 billion) in financing to build its 3G network in Italy.
An underwriting group of 11 banks has agreed to a US$2.8 billion package for H3G, with an additional US$893 million coming from equipment vendors.
The senior credit facility has a tenor of 9.75 years and has two tranches, the first for US$893 million and the second for about US$2 billion.
The money comes as banks have become reluctant to fund 3G ventures due to the gloomy state of the telecommunications industry and the current high debt load of many operators. However, the funding means Hutchison can move forward with its Italian 3G rollout.
H3G won 35 megahertz of spectrum in Italy in October 2000. Hutchison Whampoa holds an 88.2-percent stake in H3G.
