Orascom Telecom confirms Algeria financing
Orascom Telecom (OT) recently confirmed the receipt of $15 million convertible note and an agreement for an additional $15 million facility for OT Algeria, with an option for the total amount of $30 million to be converted into equity, confirmed a company statement.
OT also announced that the AIG African Infrastructure Fund has made an initial investment in Orascom Telecom Algeria in the form of a $15 million convertible note, and has the option to invest a further $15 million in the form of equity after the closing of the mid-term financing facility currently being raised by OT Algeria.
The AIG African Infrastructure Fund is a $407 million private equity fund managed by Emerging Markets Partnership (EMP), headquartered in Washington, DC. EMP acts as a principal advisor to six infrastructure funds with over billion dollars in committed resources. Prominent investors in the Fund include AIG insurance group, the International Finance Corporation, the African Development Bank, the Development Bank of Southern Africa, Sheikh Mohammed Al-Amoudi, Proparco, the European Investment Bank and other European Development Funding Institutions.
Orascom Telecom Algeria launched its service in 2002 and has now reached approximately 90,000 postpaid subscribers in seven Algerian provinces. The mid term financing facility for the project is underway, and will be structured around a Buyers Credit Facility of $300 million, arranged by Credit Lyonnais and West LB in addition to a $175 million syndicated Credit Facility arranged by a consortium of local Algerian banks.
The Credit Lyonnais/West LB Buyers Credit Facility will cover the purchase of GSM equipment from Alcatel and Siemens, and has already received the approval of COFACE and HERMES, the French and German Export Credit Agencies. Orascom Telecom Algeria expects to close the mid term financing by July 2002. — (menareport.com)
© 2002 Mena Report (www.menareport.com)