Axis bags $1.2 bn funding (Indonesia)
Saudi Telecom Company (STC) has stated that its Indonesian unit Axis has secured USD 1.2 billion in financing to help fund its expansion and growth strategies for the next five years.
According to STC, the finance deal, with a tenor of seven and a half years, involves several local and international financial institutions and all facilities have been structured in a sharia-compliant manner.
This includes three facilities: a $450 million Murabaha facility, powered by Deutsche Bank and HSBC and underwritten by DB and Saudi British Bank; a $400 million facility for equipment purchases from Huawei, underwritten by China Development Bank; and a $350 million facility for equipment purchases from Ericsson, arranged by HSBC and backed by EKN, the Swedish Export Credit Agency.
The company added that the financing will help fund Axis expansion and growth strategies for the next five years, especially expansion into mobile broadband and improved coverage nationwide, which in turn will result in higher financial returns for the group.