Dec 10, 2008
Neotel secures R7,5bn to fund infrastructure roll-outBack
Development Bank Of Southern Africa|Industrial Development Corporation|Infrastructure Finance Corporation|Investec Bank|Nedbank Capital|Neotel|South Africa|Bank|Fixed-line Operator|Fixed-lined Operator|Project Finance|Telecommunications Industry|Telecommunications Sector|Ajay Pandey|Mike Peo|R10
© Reuse this
A consortium of financial institutions, comprising Nedbank Capital, Investec Bank, the Development Bank of Southern Africa, the Industrial Development Corporation and the Infrastructure Finance Corporation, would provide the funding.
Combined with R3,1-billion in equity raised by its shareholders, Neotel had R7,5-billion funding in total, which was its peak funding requirement.
The operator planned to spend between R10-billion and R11-billion on its infrastructure roll-out, with generated revenues expected to provide the balance of the funding.
Pandey said that the deal it had signed with the consortium was significant, given the current market turbulence and the difficulty companies had in raising capital.
He noted that this was a clear indication that the financial institutions in South Africa had confidence in the telecommunications industry.
Nedbank Capital head of infrastructure project finance Mike Peo agreed that the telecommunications sector was one of the key sectors the bank needed to be in.
Meanwhile, Neotel had already spent about R2-billion on its infrastructure roll-out and would be spending from another R1,5-billion to R2-billion in the next three years, said Pandey.
He noted that Neotel had, so far, gained entry into the wholesale, enterprise and the consumer markets.
Pandey said the uptake of its products and services by the enterprise market had been good, with plenty of new clients, as well as repeat business.
Further, he said that while its entry to the consumer market was still limited, the response from the marketplace had been "phenomenal".
Neotel had only been providing its products and services to the consumer market for about six months and planned to grow its market share further.
"We are definitely making substantial progress," commented Pandey, adding that the price and value for both enterprise customers and consumers should make for an attractive offering, especially with the slowdown in the economy.
This would allow Neotel to increase its market share, despite the tough economic conditions.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other ICT News
Updated 3 hours ago A real-time human resource management system integrates security, attendance and productivity information available within organisations to enable managers to make informed, relevant decisions, says people management specialist company PRP Solutions chairperson...
Updated 17 minutes ago The death Thursday of South Africa's liberation leader and first democratic president Nelson Mandela triggered an unprecedented worldwide chorus of awed respect. Statesmen, resistance leaders, Nobel laureates and prisoners of conscience have died before, but never...
Updated 42 minutes ago Nelson Mandela, who died on Thursday, once the world's most famous political prisoner, emerged from a 27-year jail term in 1990 to lead South Africa from apartheid to democracy. President Jacob Zuma announced his death on the public broadcaster just before...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Updated 3 hours ago Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
Updated 3 hours ago South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Updated 3 hours ago Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Updated 3 hours ago Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Updated 3 hours ago Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.