Saudi Telecom Axis Inject 1.2 Billion U.S. Dollars

Saturday, May 28, 2011 Label:
Saudi Telecom Company is ready to disburse U.S. $ 1.2 billion fund to one of its subsidiaries in Indonesia, namely Axis, for business expansion in the next five years.
Press Release, Friday (26 / 5), said the signing of financing agreement with a term of 7.5 years it has been done on Monday (23 / 5).
This agreement covers three financing facilities, which is worth 450 million U.S. dollars in the form of Murabaha trade agreement by Deutsche Bank and HSBC as well as the underwriting process by Deutsche Bank and Saudi British Bank (SABB).
Then 400 million dollars in purchasing the device from Huawei with the underwriting process is China Development Bank. Furthermore, 350 million dollars in the purchase of devices from Ericsson via HSBC and supported by EKN ie, an export credit agency of Sweden. All forms of financing provided for in the structure of sharia.
Axis Chief Executive Officer, Erik Aas, explained that financing will help fund expansion and strategic development of the Axis for the next five years, particularly the expansion of mobile broadband and improve service coverage nationally.
"Indonesia's telecommunication industry to grow rapidly and is very dynamic with the use of mobile broadband continues to increase. About 50 percent of Indonesia's population is under 30 years of age and alluse social networking applications on their phone, "he said.According to Erik, business expansion is expected to provide greater financial income for the group of companies.
He added that growth in the telecommunications sector in Indonesia yanvg in line with the growth of penetration rate of mobile phones and the internet, have a positive impact on the Axis.
Since it was first launched in 2008, the telecom operator has exceeded the achievement of as many as 11 million subscribers and reach more than 400 cities across Indonesia.
"With this funding, we are ready to expand into the mobile broadband and improve national coverage. We also have to prepare ourselves to continue to increase market share and revenue," he added.
Chief Financial Officer of the Saudi Telecom Company, Ameen Al Shiddi, said this agreement is one of the financing agreements with Asia's largest Islamic structures, even the largest in East Asia.
"The magnitude of this financing agreement shows the confidence of financial markets on the ability of the Axis in achieving its business objectives," he told a press conference Axis.
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