JPMorgan Treasury Services has provided medium-term export financing in support of a sale by Nortel, the Canadian telecommunications equipment manufacturer, to CJSC Telesystems of Ukraine.
The financing, which is in support of a telecommunications build-out project in Ukraine, is being provided through PrivatBank in Ukraine. The transaction is guaranteed by Export Development Canada (EDC), and is the first transaction for which JPMorgan arranged financing under the EDC Bank Guarantee Program.
“Although highly complex and dependent on the teamwork of many parties, the deal was completed in a relatively short time, and much of this success was due to JPMorgan’s ability to understand the clients’ objectives, preferences and constraints, as well as those of EDC, and to demonstrate deep knowledge of the region and the marketplace,” says Jeremy Shaw, head, JPMorgan Trade Services in EMEA.
“Ukraine presents rich opportunities for Canadian exporters and investors in many different industry sectors. As Canadian companies in the highly sophisticated telecom business compete world-wide, EDC will be a partner in paving the way for greater success.” adds Eric Siegel, president and CEO, EDC.
“We are very pleased to work with JPMorgan on this important transaction in the Ukrainian market, which is a growing market for Nortel,” says Simon Freemantle, director, Global Treasury Operations at Nortel.
“By working with JPMorgan we were able to offer our client, CJSC Telesystems, the most competitive and complete solution to facilitate this transaction,” adds Ludmila Shmalchenko, deputy chairman of the board, PrivatBank.