Indonesia's Axis will see $1.2 billion in financing courtesy of parent Saudi Telecoms Company (STC).
The sum will go toward network expansion with the aim of boosting Axis’s mobile broadband offerings Indonesia.
According to The National, the deal comprises a $400 million facility for equipment purchase from Huawei, a $350 million facility for Ericsson gear and a $450 million commercial service.
The deal is expected to run for 7.5 years and STC CFO Ameen al Shiddi said the arrangement was one of Asia’s largest Islamic finance deals.
STC had earlier this year raised its stake in Axis to 80.1% from 51%. STC, along with Axis’s other shareholder Maxis, has also committed an additional $440 million in shareholder loans to bring Axis’s total financing to $1.6 billion. STC’s $371 million share of the commitment has yet to be paid.
Axis, which offers both 2G and 3G services, has 11 million subscribers. STC’s chief of international operations said the Saudi-based company was looking to enter additional markets outside of Saudi Arabia, with the goal of having more than half its revenue from foreign operations.