Axis, a telco in Indonesia which is also a part of the Saudi Telecom Company (STC) network, has landed US$1.2 billion in financing for its business development. The fund comes out of a number of STC agreements with several leading companies and banks.
The STC deal for Axis development in Indonesia was conducted with the partner companies in the sharia-compliant manner. The deal also provides facilities that support the development of Axis’ mobile broadband and improved coverage nationwide.
According to Trade Arabia, Axis gets a $450 million Murabaha facility, arranged by Deutsche Bank and HSBC and underwritten by DB and Saudi British Bank; a $400 million facility for equipment purchases from Huawei, underwritten by China Development Bank; and a $350 million facility for equipment purchases from Ericsson, arranged by HSBC and backed by EKN, the Swedish Export Credit Agency.
Ameen Al Shiddi, the chief financial officer of STC, explained:
“It was one of the largest Islamic financing deals in Asia and one of the largest international financing deals in East Asia. The deal will help fund Axis’ expansion and growth strategies for the next five years, which in turn will result in higher financial returns for the (STC) group.”
Given the rapid growth and intense competition in Indonesian telecommunications industry, the development fund will certainly help Axis to take on its rivals. Axis currently has 11 million subscribers and provides services in more than 400 cities across Indonesia.
[Via Trade Arabia]
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