Brazil's BNDES Approves BRL1.2 Billion Financing For Telecom Firm GVT

Brazil's national development bank, the BNDES, on Wednesday said it has approved 1.2 billion Brazilian reais ($664 million) in loans for telecom operator GVT, a subsidiary of France's Vivendi SA (VIV.FR, VIVEF, VIVHY), to back its three-year investment program.

The government-run bank said it's keen to back competition in the broadband and fixed-line markets and that GVT also aims to extend its operations into new cities across the country over the three years from 2011 to 2013, as well as offer pay-TV services.

BNDES said GVT is planning to nearly double its workforce to 14,200 employees by the end of next year, from around 7,900 at the end of 2010.

GVT is the fastest growing telecom company in Brazil, and provides services in 105 cities, mostly across the south and southeast of the country. GVT has said it plans to invest at least BRL10 billion over the next five years, including BRL1.8 billion in 2011 alone.

-By Matthew Cowley, Dow Jones Newswires; [phone]; [e-mail]