Saudi Company’s $1.42 Billion Funding Hints at European Tower Asset Acquisition – What’s the story?

TAWAL, a Saudi Telecom Co.’s subsidiary has managed to raise a staggering $1.42 billion in Islamic financing. The capital is raised to aid in the purchase of tower assets from the Netherlands-based United Group. The move would allow TAWAL to expand its reach into the European market.

Back in April, the Saudi company agreed to acquire tower infrastructure valued at $1.34 billion from United Group which has sites in Bulgaria, Croatia, and Slovenia. Furthermore, in a regulatory filing, the company stated that the transaction was financed via a Shariah-compliant bank loan with the deal finalized on August 24. According to the company,

This acquisition represents a unique addition to stc complete digital ecosystem. The strategic acquisition bolsters TAWAL’s tower portfolio, raising it to over 21,000 sites across five countries

TAWAL Secures $1.42 as Capital Funding

The major financer of TAWAL was Saudi National Bank (KSA’s largest lender). It played a vital role by donating $1.02 billion to the funding, with $300 million as a bridge loan. The other lenders include Dubai Islamic Bank and First Abu Dhabi Bank, which contributed $250 million and $150 million, respectively.

Earlier this month, STC made an important announcement regarding its joint venture with the Public Investment Fund, known as IoT Squared. The joint venture will allow STC to acquire the entire ownership of Machinestalk, a famous provider of Internet of Things solutions. According to an official press release, this strategic acquisition is aimed at accelerating the growth of IoT squared and establishing its position as one of the top players in the regional IoT solutions sector.

Furthermore, the statement emphasized that these investments are going to play a vital role in advancing the digital transformation within KSA.  These moves align with the objectives of Saudi Vision 2030 to establish the region as a prominent technology hub in the MENA region.

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