Saudi Telecom Co. — Capital/Financing Update 2011

May 24, 2011

SAUDI TELECOM COMPANY ANNOUNCES THE SIGNING OF A USD 1,2 BILLION BY NTS COMPANY AN INDONESIAN SUBSIDIARY

7010 · 24/05/2011 08:46:55 · Announcement #21832 · View on Saudi Exchange

SAUDI TELECOM COMPANY ANNOUNCES THE SIGNING OF A USD 1,2 BILLION BY NTS COMPANY AN INDONESIAN SUBSIDIARY

NTS (AXIS) Company an Indonesian subsidiary of Saudi Telecom Company signed on 23 May 2011 a USD 1.2 billion financing deal with a tenor of 7.5 years with local and international financial institutions. The deal comprises three facilities: a USD450 million Murabaha facility, arranged by Deutsche Bank and HSBC and underwritten by Deutsche Bank and Saudi British Bank (SABB); a USD400 million facility for equipment purchases from Huawei, underwritten by China Development Bank; and a USD350 million facility for equipment purchases from Ericsson, arranged by HSBC and backed by EKN, the Swedish Export Credit Agency. All facilities have been structured in a sharia compliant manner. This financing will help fund AXIS expansion and growth strategies for the next five years, especially expansion into mobile broadband and improved coverage in Indonesia, which in turn will result in higher financial returns for the Group. The Indonesian telecom sector has witnessed sound growth over the past few years owing to the rising mobile and internet penetration rates, which have had a positive impact on AXIS, with the company passing 11 million subscribers and with service available in more than 400 cities across Indonesia

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