Vodafone share price: Company to receive $850-million loan from Canadian agency

on Dec 17, 2014
Updated: Oct 21, 2019

iNVEZZ.com, Wednesday, December 17: Vodafone Group Plc (LON:VOD) is receiving $850 million in Canadian trade financing to help it buy products and services from BlackBerry Ltd and other Canadian suppliers. The deal was announced on Monday by Export Development Canada (EDC), the body lending the money to the UK mobile phone group. The majority of the sum, or $750 million, will be given to Vodafone to purchase BlackBerry products. The remaining $100 million will be used to finance future procurement from smaller Canadian suppliers.

This is the second time Vodafone has received a loan from the agency. The first deal was for a $750-million loan, which was recently repaid by the British mobile carrier. “Vodafone’s global presence makes it a company that Canada’s telecom sector has to have a relationship with,” EDC senior vice president Carl Burlock said on Monday, as quoted by Reuters.
The deal adds to a number of similar agreements, which Canada has set up with other major telecommunications firms this year. In April India’s Reliance Industries Ltd was given $500 million in funding to purchase telecommunications and energy equipment. EDC also gave €180 million in September to Spanish telecoms giant Telefonica SA. Such loans are designed to boost the country’s telecoms sector, and especially struggling handset maker BlackBerry, which is currently trying to revive its fortunes under chief executive officer John Chen.

In today’s trading, Vodafone shares were 0.1 percent lower at 219.25p as of 15:04 UTC. According to the Financial Times, the 24 analysts offering 12 month price targets for Vodafone Group plc have a median target of 237.50p, with a high estimate of 280.00p and a low estimate of 130.00p. The current consensus forecast, which has been maintained since December 1, has it that the company will outperform the market.
As of 16:04 GMT, Wednesday, 17 December, Vodafone Group plc share price is 219.2500p.

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