Indonesias Axis completes $1.2 billion
One of the biggest and
most complex Islamic financings was completed last month after
nearly two years work.
The Indonesian subsidiary
of Saudi Telecom raised $1.2 billion through a triple-tranche
transaction that involved Chinas development bank,
Swedens export credit agency and the World Bank. The
financing required a Shariah-compliant structure that included
a political risk guarantee and risk management solutions to
mitigate currency and interest-rate risks.
The transaction was for
Axis, 80.1% of which is owned by Saudi Telecom, 14.9% by
Malaysias Maxis and the rest by a local investor. Saudi
Telecom also owns 25% of Maxis.
The first part of the deal comprised a $450 million Saudi
riyal and US dollar-dual currency murabaha commercial facility,
arranged by HSBC and Deutsche Bank and underwritten by
HSBCs Saudi subsidiary,...