Yahsat to raise $1.2 bn to finance satellite communications system

May 21st, 2008 - 4:11 pm ICT by admin  

Abu Dhabi, May 21 (IANS) United Arab Emirates (UAE) based satellite operator Al Yah Satellite Communications Company (Yahsat) plans to raise $1.2 billion to finance its satellite communications system, WAM news agency reported Wednesday. The 14-year non-recourse financing would raise $1 billion in term loans, $100 million in stand-by term loans and $85 million in debt service reserve letter of credit.

Yahsat intends to close the financing deal with a club of 15 banks by August 2008 and has appointed BNP Paribas as the financial advisor 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. Yahsat has a deep understanding of the needs of the region,” said Yahsat CEO Jassem Mohamed Al Zaabi.

The company has already started generating business through recent deals for leasing satellite capacities with the UAE Armed Forces and Emerging Markets Communications, operator of one of the largest teleport facilities in the world.

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