Mobitel enters US$363 million funding agreement

Kuwait-based MTC Group has inked a US$363.3 million development deal for its Sudanese venture Mobitel.

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By  Administrator Published  June 3, 2007

Kuwait-based MTC Group has inked a US$363.3 million development deal for its Sudanese venture Mobitel.

Both regional and local financial institutions including Kuwait's Gulf Bank, Boubyan Bank and the National Bank of Kuwait, along with other regional investors, have provided the facility, which is called Murabaha.

Under the terms of the agreement all proceeds will be put towards the funding of the operator's further expansion activities in Sudan.

"Mobitel intends to use the proceeds for the purpose of funding its developmental expansion projects including licence fees, network capital expenditures, as well as other operational costs in expanding the business," commented Sam Deeb, MTC Group chief financial officer.

Sudan is widely considered as one of the most lucrative telecoms markets in Africa, with mobile penetration currently standing at 10%.

MTC owns 100% of Mobitel as of February 2006, when the group purchased an outstanding 61% of the operator as part of a US$1.3 billion transaction.

Mobitel's current subscriber base has reached 3.2 million; which represents 11% of MTC's overall subscriber base. Sudan's population numbers in excess of 37 million inhabitants.

MTC has announced plans to carry out a major expansion of Mobitel to expand network coverage up to 80% of the populated area of the country by the end of 2007.

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