Yahsat Looking To Raise $1.2 Billion
[Satellite Today – 5-22-08] Al Yah Satellite Communications Co. (Yahsat) wants to raise $1.2 billon from the finance markets to fund its satellite communications system, the company said May 20.
The plans call for $1 billion in term loans, $100 million in stand-by term loans and $85 million in a debt service reserve letter of credit. Yahsat intends to close the financing with a group of 15 banks by August 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,” Jassem Al Zaabi, Yahsat’s CEO, said in a statement. “Yahsat has a deep understanding of the needs of the region and has built a strong business model that will meet its financial obligations and ensure expected returns to investors.”
Yahsat plans to launch a pair of communications satellites to provide commercial and government services throughout the Middle East, Africa, Europe and Southwest Asia.