HSBC to Fund Indosat Satellite

Second-largest mobile phone company PT Indosat has signed a $228.5 million financing agreement with HSBC to acquire a new satellite, Reuters reported.

The Palapa-D satellite will replace Palapa-C2 which will come to the end of its service in the first quarter of 2011. Palapa-D will have a service life of 15 years.

Indosat said in a statement late Thursday that Palapa-D was currently under construction by Thales Alenia Space of France and will be launched into orbit by a Chinese rocket made by Beijing Talentway Technology Corporation in September 2009.

The financing by HSBC comprises a 12-year export credit scheme and and a nine-year commercial loan. Both of the finance deals will have a two-year grace period.
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