Thuraya Mandates Lead Arrangers for US$ 600 Million Bank Facility
Thuraya Satellite Telecommunications Company has appointed a consortium of four banks as lead arrangers for its US $ 600 million financing facility. They are Abu Dhabi Islamic Bank, Australia and New Zealand Banking Group (ANZ), Societe Generale and Union National Bank.
The joint financing vehicle is based on a seven-year term and includes an Islamic tranche of US$100 million which is being managed by Abu Dhabi Islamic Bank.
The consortium, whose mandate was based on an underwritten offer, will start arranging the bank facility through local, regional and international syndication. It was selected out of a large number of applicants, for the reputation and extensive experience of all four banking institutions in financing major projects.
The financing facility will be used for the company’s project outlay, as well as for its working capital requirements towards the construction, launch and operation of Thuraya’s advanced regional mobile satellite network. The arrangers will start meeting in the first week of January 1999, with a view to finalising and signing the contract loan with Thuraya before the end of March 1999.
Thuraya’s Chairman Mr Mohammad Hassan Omran said: "We are delighted to have reached this major milestone. With US$ 500 million equity already raised, this bank facility will complete the total financing of our mobile satellite project.
Despite unstable world financial markets, we have successfully managed to finalise a debt financing deal with a strong group of local and international banks. This increasing investor confidence in Thuraya has further reflected its viability as a leading satellite telecommunications project."
Mr Khalil Foulathi, Managing Director of Abu Dhabi Islamic Bank said: "We are proud to be associated with this mega project which is a landmark in the regional telecom sector backed by UAE and other regional sponsors. We are confident that entering into a deal of this magnitude will help us build our image as well as the image of Islamic banks in general in the local and international financial markets."
ANZ’s Assistant Director of Global Media & Telecom Group, Mr Peter Pontidas, said: "We are very pleased to be working with Thuraya as one of the most prestigious projects in this region. Thuraya’s futuristic vision and tremendous potential makes it a highly attractive financing opportunity."
Societe Generale’s Director Projects and Sectorial Finance, Mr Aditya Srivastava, said that SG, as one of the world leading project financing banks, is delighted to be working alongside Thuraya to arrange this prestigious project financing. SG remains firmly committed to the success of this transaction as well as other financing projects in the Gulf region.
Union National Bank’s Chief Executive Mr Anwer Qayum Sher said that UNB has tracked the development of Thuraya from an early stage. "This state-of-the-art mobile satellite system represents a milestone in sophisticated project financing in this region and we are firmly committed to its success," he said.