Select presents financial guarantee for 3G licence from foreign lender

15 Jul 2011

Select Communications, which was handed an Israeli 3G concession at the end of May 2011 after the original winner Marathon Investments failed to secure financing for the licence, has reportedly obtained an ILS700 million (USD204 million) guarantee from Goldman Sachs Group. However, according to Globes Online, the revelation comes despite Select having been required to obtain backing from an Israeli bank, which as previously reported by CommsUpdate had proved tricky. With the 15 July deadline looming for Select to present its financial guarantees to the Ministry of Communications (MoC), last week it was claimed that all three of Israel’s major banks – Bank Leumi, Bank Hapoalim and Israel Discount Bank – remained unconvinced regarding the prospect of investing in the telecoms sector. As a result of the latest development the MoC will now need to decide whether to accept the financial guarantee, particularly as doing so could open the door to a legal challenge from Marathon, which may argue that it too could have obtained a guarantee from a foreign lender had that been a valid option.

Israel, Ministry of Communications, Select Communications