Arabsat Organizes $300 Million Islamic Credit Facility
[12-17-07 – Satellite Today] Arabsat has signed a $300 million credit deal with the Saudi Hollandi Bank that will secure the operator’s expansion plans throughout the next five years, the operator announced Dec. 14. The facility will be in accordance with the Murabaha principles of Islamic banking, in which the seller expressly mentions the cost he has incurred on the commodities to be sold and sells it to another person by adding some profit or mark-up thereon, which is known to the buyer.
Saudi Hollandi Bank was the preferred financier of choice for Arabsat following a global tendering process. To be repaid throughout a period of five years, Arabsat’s Islamic Murabaha facility will be fully funded by Saudi Hollandi Bank and will be managed by the bank’s corporate banking and Islamic finance departments.
As part of Arabsat’s aggressive expansion plans thoughout the next few year, the operator will be launching a satellite every year from 2008 to 2011 to cater to a growing demand in broadcast, telecommunications, and broadband services as well as launching high-definition television in the Middle East and North Africa region.