Canada’s export credit agency is set to lend Vodafone Group hundreds of millions of dollars for the purchase of Blackberry products.
In the run up to the launch of the BlackBerry Classic, word comes that the Export Development Agency will lend British telecoms company Vodafone a whopping $850 million as part of a five-year financing package that will include $750 million for the purchases of BlackBerry equipment and services. The remaining hundred million will also be spent on Canadian companies, but will go towards smaller telecom suppliers that would have difficulty getting in the door at Vodafone without this kind of agreement.
The financial agreement and terms have not yet been formally announced but the Globe and Mail cites EDC VP Todd Winterhalt as confirming the news. This is reportedly EDC’s largest financing package of 2014 and the second to be offered to Vodafone in as many years. The company received $750 million in 2012. Winterhalt explained that Vodafone wouldn’t be able to borrow such a hefty sum from a private lender, which was why the EDC stepped in with the necessary financing.
Of course, the positive effects for BlackBerry can’t be overlooked. Though the company is set to announce the Classic tomorrow, the company’s strategy is firmly in enterprise and services. With John Chen, Blend, and BES 12, BlackBerry is focusing on its enterprise and business-grade customers more than ever. Chen just recently reiterated the company’s focus on enterprise solutions that leverage its “legendary” security.
Source: Globe and Mail