Johannesburg - Telkom [JSE:TKG]
on Friday signed a loan facility, backed by China Export & Credit Insurance Corporation (Sinosure), of $127m with a tenor of up to seven years.
The facility has been put in place to finance capital expenditure, including spending for a portion of the group's mobile arm, 8.ta.
Barclays Capital, the investment banking division of Barclays Bank, was appointed as the export credit agency (ECA) adviser. Absa Capital, the investment-banking arm of Absa Bank (ASA), and Barclays Capital acted as the joint co-ordinating mandated lead arrangers.
According to Barclays Capital, the loans represent the first under an ECA umbrella facility that will cover Telkom's ECA financing requirements over a five-year period, during which time Telkom plans on expanding its mobile operations.
Telkom launched its mobile service in October last year.
The group, however, is facing troubles at a boardroom level after acting CEO Jeffrey Hedberg decided not to renew his contract at the end of March.