Alca-Lu strikes deal for vendor financing

Robert Clark
09/11/2009
News
Daily News

Alcatel-Lucent has improved its chances against cashed-up Chinese vendors by securing backing from Belgian export credit insurer ONDD.

The French-based supplier said it had struck a deal with the state-owned agency to provide third-party financing for sales to carriers worldwide.

Alca-Lu did not disclose the details of the arrangement with ONDD.

However, it said it had clinched a €46 million ($68m) sale to Turk Telekom with a loan from French bank Société Générale, backed by the Belgian agency. The loan could be extended to support fresh contracts between Turk Telekom and Alcatel-Lucent.

Stefaan Van Boxstael, ONDD’s deputy head of underwriting, said the agreement “creates new ways for Alcatel-Lucent to meet customer requirements for worldwide sourcing.”

It covers the sale of optical fiber, access, mobile, and IP and applications, he said.

Alca-Lu’s vendor financing deal is a response to the mammoth credit lines Huawei and ZTE have clinched with mainland Chinese banks to back sales to foreign carriers.

In September, Huawei announced a $30 billion contract with the China Development Bank (CDB) to finance equipment sales abroad. ZTE has lined up $25 billion in credit from the CDB and Export-Import Bank of China for the same purpose.

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