XL secures USD214m loan from EKN

15 Dec 2008

The Jakarta News reports that publicly listed mobile operator Excelcomindo Pratama (XL) has signed a deal with Swedish export credit guarantee agency EKN concerning a USD214 million loan for the purchase of equipment from Ericsson of Sweden. XL says the facility, which was arranged by ABN AMRO Bank Stockholm Branch and Standard Chartered Bank, is the first tranche of the total USD400 million facility provided by EKN. The funding will be used to fund part of the cellco’s CAPEX plans for 2008/09. The mobile operator has increased its capital expenditure target for 2008 from USD1 billion to USD1.25 billion, a significant portion of which will be used to upgrade its networks as subscriber numbers rise sharply. XL had 22.9 million mobile subscribers at the end of June 2008, up 124% year-on-year. Last month XL secured a USD140 million syndicated loan from four international banks – DBS Bank, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF and Chinatrust Commercial Bank – to help finance its ambitious rollout objectives.

Indonesia, Ericsson, XL Axiata