Iraqi mobile operator Asiacell has secured a US$24m medium-term facility with HSBC to finance equipment being supplied by European vendor Nokia Siemens Networks (NSN).
According to a company statement, the equipment being provided by NSN, a joint…
Iraqi mobile operator Asiacell has secured a US$24m medium-term facility with HSBC to finance equipment being supplied by European vendor Nokia Siemens Networks (NSN).
According to a company statement, the equipment being provided by NSN, a joint venture between Finland’s Nokia and Germany’s Siemens, will enable the group to expand and upgrade its existing network.
The facility is backed by German export credit agency Euler Hermes Kreditversicherungs, representing the first ECA financing in Iraq since the 1980s. No further financial details were released.
In a statement, Simon Lee, director of HSBC’s project and export finance team, said: “Iraq has a substantial infrastructure development requirement and ECA financing will be a very important part of the associated financing needs.
“This Euler Hermes -supported financing emphasises yet again the continued importance and attraction of medium and long term ECA supported finance to Middle Eastern borrowers for the financing of capital expenditure.”
Asiacell was unable to comment before the press deadline.
The financing comes as reports citing Iraqi communications minister Mohammed Allawi suggest the country will auction its fourth telecoms licence in early 2012.
Joining Asiacell in Iraq are mobile operators Zain and Korek.
