The fourteen-year non-recourse financing is split in to a $1,014m term loan, $100m of stand-by facilities and $80m in debt service reserve letter of credit.
"We are very pleased with the extremely positive response to the financing for our wholly owned subsidiary. The deal is not only oversubscribed but has very competitive pricing and set structuring benchmarks for the region," said Derek Rozycki, Executive Director, Project & Corporate Finance at Mubadala.
"Yahsat received commitments from leading international and regional banks in excess of $1.6bn for the $1.2bn financing which is testament to the strength of our sponsorship and our strong business model" said Jassem Mohamed Al Zaabi, CEO of Yahsat.
In May this year Yahsat announced that it is approaching the financial market to raise PPP style project finance funding for its satellites. The first satellite Yahsat 1A is currently being built and will be launched in the fourth quarter of 2010. The second satellite, Yahsat 1B, will follow a few months later in the first half of 2011. Yahsat has already started generating sustainable business through recent long term leases with the UAE Armed Forces and the US company Emerging Markets Communications, Inc., operator of one of the largest teleports facilities in the world.
In the final allocations, 14 banks are participating and the margin on the loan starts at 1.1% and increases to 1.4%.
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Yahsat secures oversubscription for landmark non-recourse $1.2bn financing
- United Arab Emirates: Wednesday, August 06 - 2008 at 15:05
- PRESS RELEASE
Al Yah Satellite Communications Company PrJsc (Yahsat), the UAE's first nationally-owned satellite operator and wholly-owned subsidiary of Mubadala Development Company (Mubadala), has secured commitments for $1.2bn to finance the Middle East's first hybrid satellite communications system.
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About Al Yah Satellite Communications Company (Yahsat)Yahsat is the UAE's first nationally-owned satellite communications company providing hybrid satellite communications services to commercial and governmental clients in the Middle East, Africa, Europe and South-West Asia.
With a wide portfolio of voice, data, video and internet connectivity solutions, Yahsat satellites are designed based on market requirements and future applications.
Yahsat is partnering with the consortium of EADS Astrium, Thales and Alenia Space to build a hybrid satellite communications system. The first satellite Yahsat 1A is currently being built and will be launched in the fourth quarter 2010. The second satellite Yahsat 1B will be launched in the first half of 2011.
Yahsat is owned by Mubadala Development Company, an investment firm that is helping to diversify Abu Dhabi's economy through capital intensive investments and by building businesses.
Mubadala establishes new companies and acquires strategic holdings in existing companies, either in the UAE or abroad. In partnership with world class investors, the company actively manages investments in strategic sectors including energy, real estate, healthcare, aerospace and services. These investments diversify and further develop the growing economy of Abu Dhabi, while achieving superior returns on its investments.
About Mubadala
Mubadala Development Company (Mubadala) is a Public Joint Stock Company headquartered in Abu Dhabi, capital of the United Arab Emirates. Its focus is on developing and managing an extensive and economically diverse portfolio of commercial initiatives. It does this either independently or in partnership with leading international organizations. Mubadala's commercial strategy is fundamentally built on long-term capital-intensive investments that deliver strong financial returns.
The company manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the Emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure, and services.
Mubadala's sole shareholder is the Government of the Emirate of Abu Dhabi.
For more information, please contact:
Salma Al Mansouri, Yahsat +971 2 406 1111 Ext 115
Mohammed Amasha, Mubadala
+971 50 824 0519
Posted by Medilyn Manibo, Assistant News EditorWednesday, August 06 - 2008 at 15:05 UAE local time (GMT+4)
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