Standard Chartered Bank has invited banks to sub-underwrite a US$250mn loan for Malaysia’s Binariang Satellite Systems, part of Boeing. Binariang is the only licensed commercial satellite operator in the country.

The loan is split into a US$125mn seven-year term loan priced at 175bp over Libor and a US$125mn one-year term loan. The one-year tranche includes an option for a six-year extension or may be taken out by a US Ex-Im supported tranche.

There is a flat fee of 57.5bp and an additional early bird fee of 7.5bp if lenders had replied by May 14.

The loan is for construction of the Malaysia East Asia Satellite (Measat-3) estimated at US$132.5mn, plus working capital. Measat-3 will be located with Measat-1 and Measat-2 to provide back-up capacity to meet the increased market demand for satellite services.