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Qatar gas company raises $1.5 billion for tanker purchase
Qatar Gas Transport Company (Nakilat) has raised $1.5 billion from banks to finance the construction of 25 new liquefied natural gas (LNG) tankers. Sumitomo Mitsui Banking Corporation arranged the deal with 12 banks providing the debt. Nakilat is also expecting to raise a further $1 billion from the bank market in the next 18 months. The debt was split between a 17-year $925 million senior bank facility, a 17-year $125 million subordinated debt facility, and a 12-year $450 million bank facility provided by export credit agency Korea Export Insurance Corporation (KEIC). Nakilat’s second quarter profit in of 2008 was $14 million, an increase of 63% compared to the same period in 2007.
Zain launches $4.5 billion rights issue
Kuwaiti mobile giant Zain launched a $4.5 billion rights issue on August 17. Existing shareholders have until September 18 to take up the rights issue. The extra capital will be used to finance future expansion plans and meet financial commitments. Zain has expressed interest in one of the two mobile phone operators in Lebanon that are expected to be privatized in spring 2009. The company is also planning on buying stakes in state-owned operators in Algeria and Iran by the end of 2008. Governments in both countries have given their approval to sell their respective stakes in Algeria Telecom and Telecommunication Company of Iran.
Tunisia prepares for ‘Open Skies’ with Europe
Tunis is negotiating with the European Commission (EC) for an ‘Open Skies’ deal and expects to reach an agreement by the end of 2009. The accord stipulates that Tunisia harmonize its air traffic management system with the EU, introduce new safety and security standards and comply with standards set by the International Civil Aviation Organization (ICAO). Meanwhile, the EC is launching a one-year study to harmonize air traffic management with members of the Euro-Mediterranean Aviation Group, which includes Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey. The EC is preparing individual plans for each country to bring their aviation practices up to EU standards. Europe is seeking to establish bilateral agreements with each country, with a view to eventually extending the European Single Sky to the eastern and southern Mediterranean. Discussions with Tunisia and the Euro-Mediterranean Aviation Group follow the successful 2006 Open Skies deal with Morocco. Tunisia’s efforts to become a hub between Europe and North Africa also saw Tunis Air order new Airbus planes worth $2 billion, including three A350-800s, three A330-200s and 10 A320s.
