Great Interest in Thuraya by Financial Community
June 1998
The financial community expressed great interest in bidding for the underwriting of the remainder of Thuraya’s project cost, at a Debt Financing Forum held in Abu Dhabi recently.
A total of 65 delegates representing 31 renowned local and international banking institutions participated in the event. Interest was high in recognition of the successful private placement of US$ 500 million of Thuraya’s equity capital a year before. The loan amount is estimated at approximately US$ 500 to 550 million.
The banking industry had kept a close watch on Thuraya’s progress since the signing of its US$ 1 billion contract with Hughes Space and Communications International, Inc, in September 1997.
Thuraya planned the debt financing phase in February 1998, and after careful consideration, selected a number of local, regional and international banks to attend the Debt Financing Forum.
Thuraya’s Chief Executive Mr. Yousuf Al Sayed welcomed the banking delegates to the forum and thanked them for their continued interest in Thuraya. He said that the company has progressed well and now stands as one of the most viable regional satellite telecommunications projects in the world.
Technical and marketing presentations were given to bank delegates by Thuraya’s management, followed by a question and answer session. Merrill Lynch, Thuraya’s financial adviser, presented the financing phase approach and financial models. It is expected that the debt agreement will be finalised by October this year.