Saudi incumbent STC has revealed the lenders involved in the US$1.2bn financing at its Indonesian mobile subsidiary, Natrindo Telepon Seluler (NTS), which operates as Axis.
The 7.5-year transaction includes three facilities: a US$450m Murabaha facility,…
Saudi incumbent STC has revealed the lenders involved in the US$1.2bn financing at its Indonesian mobile subsidiary, Natrindo Telepon Seluler (NTS), which operates as Axis.
The 7.5-year transaction includes three facilities: a US$450m Murabaha facility, arranged by Deutsche Bank and HSBC and underwritten by Deutsche Bank and Saudi British Bank (SABB); a US$400m facility for equipment purchases from Chinese vendor Huawei, underwritten by China Development Bank; and a US$350m facility for equipment purchases from Swedish vendor Ericsson, arranged by HSBC and backed by EKN, the Swedish Export Credit Agency.
All facilities are sharia compliant. Axis will use the proceeds to support its expansion and growth strategies for the next five years, emphasising mobile broadband and improved coverage.
STC said that Axis now boasted over 11 million subscribers and served more than 400 Indonesian cities.
STC, when it upped its stake from 50% to 80.1% in March, agreed to provide an initial loan of US$81m to Axis, followed later by a US$290m shareholder facility.
Bank of America Merrill Lynch advised STC on that transaction.
A separate US$412m loan provided by Maxis to Axis was reportedly cancelled, with Maxis responsible for a US$61m equity payment.
The remainder of NTS is owned by Maxis Communications (14.9%) and investor Harmersha Investindo (PTHI) (5%).
