Wataniya announces closure of funding for Algerian subsidiary

Wataniya Telecom (The National Mobile Telecommunication Company) has announced the closing of $490 million medium term financing for its mobile services subsidiary in Algeria, Wat-aniya Telecom Algerie, operating under the trade name Nedjma.

The financing proceeds are to be used to continue the construction and expansion of the GSM network across Algeria.

The $490 million equivalent medium-term financing, combined with the $421 million committed equity, completes the permanent capital structure of Nedjma. "This is another landmark transaction for the company," said Faisal Al Ayyar, chairman of Wataniya Telecom.

"It demonstrates Nedjma's commitment to setting new standards in the Algerian telecom market with competitive pricing, investing in developing a high quality network, and driving the development of the mobile media services market in Algeria," added Al Ayyar. The multi-sourced financing package was structured and led by Citigroup and is to be repaid over seven years.

Wataniya Telecom Algerie was awarded Algeria's third GSM license by the Telecom and Post Regulation Authority in December 2003 with a bid of $421 million. It is licensed to operate a dual band (GSM 900 and GSM 1800) network for an initial 15 year period.

Nedjma, which launched its mobile network on August 25, 2004, already has over 700,000 subscribers. With the mobile market expanding rapidly in Algeria, Nedjma will cater to new subscribers by offering innovative services.

Wataniya Telecom Algerie is owned by Wataniya Telecom. The other shareholders are Gulf Investment Corp and United Gulf Bank.