Emirates Bank and JP Morgan underwrite deal
Emirates Bank and JP Morgan are said to have underwritten revolving facility of more than $300 million for the UAE-based leading telecom retail company Axiom Telecom, according to market sources.
The general syndication for this, which is perceived to be Axiom's first such deal, is likely to take place during this month itself and several banks have shown interest in the same. Though the pricing details are not available, the market believes the Axiom debt will attract a very good price.
"The new trend is that more and more medium-sized companies are coming forward for syndications in the place of bilateral arrangements. On the one hand, the fast-growing economy is prompting well-established business entities to seek expansions and with the funding requirements growing, it will be cumbersome to go for bilateral deals," said a banking expert.
Among the syndicated loan deals that took place in 2007, a good number of them were from small to medium-sized companies. Axiom has been on a growth path during the last few years and has chalked out and fulfilled several innovative plans as part of its long-term strategy.
A few months ago, Axiom tied up with India's Pantaloon Retail for mobile phone distribution. The 50:50 joint venture entity formed between these two entities is valued at about $40 million and is headquartered in Delhi. The new company will source and distribute handsets, set up service centres and provide after sales support.
Axiom Telecom is one of the largest distributors and retailers in the region for international brands such as Nokia, Sony Ericsson, Motorola, Siemens, Thuraya, i-mate and Simpletech. Axiom specialises in wireless communication products and boasts more than 200 outlets under its management in prime retail locations across the UAE.
Having crossed the Dh5 billion-mark in revenues, which not many in electronics trading were able to achieve in the UAE, Axiom Telecom has decided to spread its wings into other fast growing markets in the Middle East and Indian sub-continent.
Talking to The Business Weekly, Faisal Al Bannai, chief executive of the company had earlier said the company was working towards establishing its presence in several other countries, including Egypt, Iran, India and other Gulf countries, where the mobile phone market has been booming.
By CL Jose
© The Business Weekly 2007
