Indonesian telecom firm Axis has closed a US$1.2bn package with local and international banks.
The deal comprises three separate facilities, including a US$450mn murabaha loan arranged by Deutsche Bank and HSBC.
Deutsche and Saudi British Bank underwrote the Islamic loan, which was guaranteed by the World Bank’s insurance arm, Miga.
Sweden’s export credit agency EKN backed a US$350mn HSBC arranged loan for equipment purchases from Ericsson.
China Development Bank loaned US$400mn for equipment purchases from telecom firm Huawei.
Axis is a subsidiary of Saudi Telecom and as such, all loans were arranged to be shariah compliant.
“This deal is one of the largest Islamic financing deals in Asia and one of the largest international financing deals in East Asia,” says Ameen Al Shiddi, chief financial officer at Saudi Telecom.
“The size of the financing deal demonstrates the confidence that the financial markets have in the ability of Axis to achieve its business goals.”
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