Telecommunications company Telkom SA (TKG) on Friday signed a loan facility, backed by China Export & Credit Insurance Corporation (Sinosure), of US$127 million with a tenor of up to seven years.
The facility has been put in place to finance capital expenditure, including expenditure for a portion of the group's mobile arm, 8.ta, as part of its expansion into the mobile telecommunications market in SA.
Barclays Capital, the investment banking division of Barclays Bank, was appointed as the export credit agency (ECA) adviser. Absa Capital, the investment-banking arm of Absa Bank (ASA), and Barclays Capital acted as the joint co-ordinating mandated lead arrangers.
According to Barclays Capital, the loans represent the first under an ECA umbrella facility that will cover Telkom's ECA financing requirements over a five-year period, during which time Telkom plans on expanding its mobile operations.
Telkom launched its mobile service in October last year.
The group, however, is facing troubles at a boardroom level after acting CEO Jeffrey Hedberg decided not to renew his contract at the end of March. - I-Net Bridge