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Brazil's BNDES Lends BRL3 Billion To Telefonica's Vivo

SAO PAULO -(Dow Jones)- Brazil's national development bank, or BNDES, on Tuesday said it has agreed to lend 3 billion Brazilian reais ($1.7 billion) to mobile phone company Vivo SA, a unit of Spain's Telefonica SA (TEF.MC, TEF). The money will be used to extend the coverage of the company's 3G-technology network, as well as increase the capacity of its 2G and 3G networks, BNDES said in a statement. With the 3G network, the company aims to offer mobile internet coverage to more than 85% of Brazilians by the end of this year, according to the statement. Vivo is also planning to extend the main transmission network which provides the backbone for its operations, according to the statement. -By Matthew Cowley, Dow Jones Newswires; +55 11 3544 7082;

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