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Al Yah seeks $1.2b to finance expansion
Al Yah Satellite Communications Company, the UAE's first nationally owned satellite operator, is seeking a $1.2 billion funding to finance its satellites communications systems.
- By Nadia SaleemStaff Reporter
- Published: 00:15 May 21, 2008
Dubai: Al Yah Satellite Communications Company, the UAE's first nationally owned satellite operator, is seeking a $1.2 billion funding to finance its satellites communications systems.
The 14-year non-recourse finance will raise $1 billion in term loan, $100 million in stand-by term loans and $85 million in debt service reserve letter of credit, officials said.
The company intends to close the deal with a club of 15 banks by August 2008. BNP Paribas has been appointed the financial adviser to manage the financing process."We are confident the financial markets will positively embrace our call for financing, particularly considering the robust growth and demand for satellite services in the region," said Jassem Mohammad Al Zaabi, chief executive of Al Yah.
Previously supported by an investment of $1.7 billion, the company is wholly-owned by Mubadala Development Company.
The company is already in the progress of building its first satellite - Yahsat A - which is set to be launched in 2010, and another satellite - Yahsat B - will follow six months later. These satellites will provide coverage for 85 countries in the Middle East, Europe and South-West Asia.
New deals
Deals have been made with the UAE Armed Forces and Emerging Markets Communications (EMC), international operator of a teleports facility, recently for leasing satellite capacities on a long-term basis, according to reports.
Working with EMC on a Dh400 million contract, the satellites will serve high-profile government, commercial and non-profit organisations, including the United Nations.
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