Neotel in a project finance deal worth $43Mn (South Africa)
Neotel Ltd. (launched in 2006) has inked a project finance deal worth $43 million. This agreement brings to ZAR7.5 billion funding secured by the company, said; it would replace all its bridging finance. Neotel said the funding is made up of a combination of new equity and debt, with the debt facilities arranged by Nedbank Group Ltd., Investec Ltd. and the Development Bank of Southern Africa.
Chief Financial Officer Arun Gupta said, “What makes this deal significant is the fact that a limited recourse deal of this size has been concluded, and this despite the current global economic climate.”
“The ability to pull off a financing of ZAR4.4 billion under current financial market conditions is testament to both the belief in the offering, which will change the shape of telecommunication services in South Africa, and in the strength of the shareholder grouping,” Mike Peo, head of Infrastructure Project Finance at Nedbank Capital, said.
