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Deal Analysis: Axis Telecoms
05 October 2011
Syndication is still continuing for an innovative commercial Murabaha tranche, backed by MIGA, of a $1.2 billion financing for Indonesian telecoms firm Axis. Dickon Harris examines MIGA’s first Murabaha financing, and one of the more innovative Islamic transactions this year.
Read more:
Axis Telecoms
Islamic MIGA
Murabaha
Saudi Telecom
Indonesia
ITFC
In June, the Multilateral Investment Guarantee Agency (MIGA) issued guarantees on a $450 million Murabaha facility for Indonesian telecoms company Axis. The deal is not only MIGA’s first Murabaha financing but also part of one of the largest Asian Islamic financing packages to date.
When finalised, the deal concludes a larger $1.2 billion in sharia-compliant financing for Axis, the Indonesian subsidiary of the Saudi Telecom Company (STC), to develop its network. Due to its complex cross-border nature, the total financing package was two years in gestation and consisted of a diverse group of lenders including commercial banks, an export credit agency (ECA), and multilateral institution MIGA.
The 7.5-year package includes: a $450 commercial capital raising facility, a $400 million capital equipment loan (capex) from China Development Bank, and a further $350 million capex loan guaranteed by Swedish export credit agency EKN.
The Murabaha commercial facility is split...
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