Saudi Telecom's Indonesian gets $1.2bn

DUBAI: Saudi Telecom Co's Indonesian subsidiary NTS signed $1.2 billion financing deal, the company said in a statement to the bourse on Tuesday.

The financing comprises of three facilities, all carrying a tenor of 7.5 years and underwritten by a group of local and international banks, the statement said.

All three facilities $450 million, $400 million and $350 million have been structured according to Islamic, or sharia-compliant principles, and two of them are for equipment purchases, the statement said.

STC raised its stake in NTS to 80 percent in March and said at the time it planned to lend the company more than $370 million, as part of its expansion into the Indonesian market. NTS began its mobile phone services in 2008 and has more than 11 million customers, covering 400 cities in Indonesia.

Copyright Reuters, 2011