Alcatel-Lucent forms strategic relationship with Belgium’s ONDD to support third party financing of telecommunications equipment
Paris - Alcatel-Lucent (Euronext Paris and NYSE: ALU) announced today it had signed an agreement with the Belgian public export credit insurer (ONDD) to support the export business of Alcatel-Lucent worldwide.
Under this agreement ONDD will provide insurance for third party financing for the purchase of Alcatel-Lucent telecommunications equipment by service providers worldwide.
“This agreement demonstrates ONDD’s commitment to supporting Alcatel-Lucent export transactions worldwide, in recognition and support of the critical role Alcatel-Lucent’s Belgian operations play as a centre of expertise in R&D, export and project management for the company. This is an important milestone in our ongoing long lasting relationship with Alcatel-Lucent,” said Stefaan Van Boxstael, Deputy Head of Underwriting from ONDD. “This agreement with ONDD allows Alcatel-Lucent to provide financing to its customers for contracts with sourcing on a global level involving technologies in the fields of optics, access, mobile, IP and applications and creates new ways for Alcatel-Lucent to meet customer requirements for worldwide sourcing.”
As a first result of this agreement, Société Générale Corporate & Investment Banking has arranged an ONDD-backed loan facility in favour of Turk Telekom, to finance various contracts between Turk Telekom and Alcatel-Lucent for a global amount of EUR 46 million. In line with Organization of Economic Co-operation and Development (OECD) regulations, part of the local services was also integrated in this financing.
The loan facility could be extended to support additional new contracts between Turk Telekom and Alcatel-Lucent. The buyer’s credit will be applied to the full foreign portion, on a global level, of contracts concluded between Alcatel-Lucent Teletas (Turkey) and Turk Telekom for technologies sourced from different Alcatel-Lucent entities around the world.
“Our overall agreement with ONDD, as demonstrated by this first transaction with Turk Telekom, provides a powerful tool for Alcatel-Lucent to help its customers meet their financing needs,” said Paul Tufano Alcatel-Lucent’s CFO. “A number of other new opportunities have already been identified, and our agreement with ONDD will provide Alcatel-Lucent with further flexibility regarding its project financing needs around the world.”
ONDD, the Office National Du Ducroire | Nationale Delcrederedienst, is Belgium’s public export credit insurer, specializing in commercial and political risk insurance, guaranteed by the state.
As an integral part of the economic and export-oriented policy on Belgium’s international trade, ONDD primarily provides cover against credit and political risks to support Belgian exports and outward investments where private sector risk cover is unavailable, due to the risk profile of these activities. Such covers have clear economic importance in Belgium, since exports of goods and services contribute more than 80% of GDP.
ONDD is allocated a ‘AA+’ rating by Standard & Poor’s. For more information, please visit external linkwww.ondd.be.
About Société Générale Corporate & Investment Banking
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Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com
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