Local satellite firm Yahsat seeks further financing

CEO Jassem Mohamed Al Zaabi is confident Yahsat
will raise US$1.2 billion in financing.

Yahsat, the UAE’s first nationally- owned satellite operator and wholly-owned subsidiary of Mubadala, will be exhibiting at MECOM 2008 (stand 2D 10), having announced it will be detailing its plans to seek US$1.2 billion to finance its satellite communications system.

The 14-year non-recourse financing managed by BNP Paribas, plans to raise US$1bn in term loans, US$100 million in stand-by term loans and US$85m in debt service reserve letters of credit. CEO Jassem Mohamed Al Zaabi, is confident the financial markets will embrace the company’s call for financing.

“Particularly considering the robust growth and demand for satellite services in the region,” Al Zaabi stated. “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 intends to close the financing with a club of 15 banks by August this year. The company has already started generating sustainable business through a recent deal with Emerging Markets Communications, operator of one of the largest teleport facilities in the world, as well with the UAE Armed Forces.