Egyptian satellite operator Nilesat could once again secure a domestic loan as it looks to procure a new DTH satellite. The company last secured domestic debt with the National Bank of Egypt to fund 50% of its first satellite in 1998, with the rest of…
Egyptian satellite operator Nilesat could once again secure a domestic loan as it looks to procure a new DTH satellite.
The company last secured domestic debt with the National Bank of Egypt to fund 50% of its first satellite in 1998, with the rest of the financing coming from shareholders.
Its second satellite, the Nilesat-102 bird that was launched in 2000, was half funded by a loan from France’s BNP Paribas and half by the company’s shareholders. Nilesat is majority-owned by the Egyptian Radio and Television Union (ERTU), Egypt’s state-owned public broadcaster, with a 40% stake. It has around 11% free float, with the remainder of the shares held by local banking and insurance companies.
Nilesat’s third and latest satellite, the Nilesat-201 spacecraft that was launched in 2010, was mostly financed by a US$168m loan, again from BNP Paribas.
However, with increasing revenues being generated from its three satellites at 7W, coupled with a leasing deal it has with Eutelsat at 70W, Nilesat CEO Salah Hamza believes local investment attitudes are starting to change.
In an interview with SatelliteFinance, Hamza said the improving financial and political situation in Egypt means national banks could now be ready to help finance its latest satellite, the Nilesat-202 bird being planned for a 2015 launch.
Nilesat-202 will serve as a back-up for Nilesat-201, as well as having a Ka-band payload. It is understood that, in addition to this, the company is close to agreeing a hosted payload deal with the Egyptian government.
Hamza declined to comment on any Nilesat-202 negotiations, but said its procurement is expected to take place during Q1 2013.
Thales built the operator’s last satellite, and for the spacecraft before that the group contracted Astrium. With the French export credit agency Coface being heavily involved in Nilesat’s investments in the past, it is likely the company will again look for a French manufacturer for its latest bird.
Despite its latest satellites having Ka-band capabilities, the operator’s main activities are still in DTH.
According to Hamza, Nilesat currently provides 700 TV channels across the Middle East, offering services including HD and IP TV.
The company has been benefitting from increasing demand for satellite TV, as Egypt’s terrestrial channels are still fully controlled by the state. It expects to generate US$162m in revenues for full-year 2012, an 8% increase compared with US$150m the year before. For 2012 EBITDA, the group expects to post US$73m, compared with US$71m for 2011.
These figures come in spite of widespread political unrest in Egypt, which ultimately ended the three-decade-long presidency of Hosni Mubarak in February 2011.
However, although Hamza said he thought it would not be long for the country’s financial and political issues to settle down, the company still sees a significant threat from targeted satellite interference.
According to the company, over the last four years it has been temporarily hit by deliberate interference that has targeted some of its news channels, including ANN, BBC Persia and Aljazeera.
Targeted interference is an issue that appears to be particularly prevalent across the Middle East. Earlier this year, Eutelsat filed a complaint with the ITU after a satellite in its troubled 25.5E orbital slot was hit with high powered interference.
This orbital position is close to the 26E slot being used by Arabsat to broadcast Iranian telecoms services. It is understood that the interference was originating from Riyadh in Saudi Arabia, where Arabsat is headquartered, although it is unclear whether the signal jamming was intentional. Eutelsat, Arabsat and Iran are still locked in a long-running dispute over satellite coordination in the region.
