Essar Telecom Kenya, which operates under the ‘yu’ brand name, has confirmed that it requires a cash injection of up to USD250 million over the next two years to grow its ailing mobile business. However, according to AllAfrica.com, the company has been restricted from borrowing locally by the high interest rates, and is now seeking funding from the likes of Europe and China. Country manager Madhur Taneja commented: ‘We are in business with the aim of keeping costs down, and you know what has been happening to interest rates here. I cannot go around the world looking for financiers, that is why we have tasked BNP Paribas’.
As reported by TeleGeography’s CommsUpdate, last month the struggling cellco enlisted French banking group BNP Paribas to help it source capital to meet future investment needs, taking steps to deny that BNP had been retained to find a buyer for yu. Nevertheless, sale speculation continues to dog the cellco, with South African duo MTN and Vodacom and Vietnam’s Viettel Corporation all linked with a move for the Indian-owned operator.