Telkom has secured a US$127m (R900m) loan from China with a term of up to seven years. It will use the money, at least in part, to fund its fledgling mobile business, 8ta.
China Export and Credit Assurance Corporation, also known as Sinosure, is backing the facility. Sinosure is China’s state-owned credit export agency.
Telkom is spending R6bn over five years on 8ta, which is SA’s fourth mobile network operator.
According to a statement issued on Friday by Barclays Capital, which arranged the loan, Telkom will use technology manufactured by China’s Huawei to extend its mobile network.
Telkom is the second SA telecoms company in six months to receive a loan from China. In August last year, Cell C released details about a R2,2bn loan agreement it signed with China Development Bank. Cell C used the money to restructure its debt. — Staff reporter, TechCentral
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