Private placement underway for gulf undersea cable project
Gulf Bridge International (GBI) has signed a private placement deal with Qatari bank Masraf Al Rayan to raise approximately US$445m in order to fund a new undersea telecom cable project.
Masraf Al Rayan has fully underwritten the placement and will also act as escrow agent, while subsidiary Al Rayan will provide financial advice to GBI.
GBI plans to create an underwater fibre optic network across the Gulf and North Africa, with connections also being made to both India and Italy. It is to be operated and owned by the Gulf Cooperation Council (GCC), with Knowledge Ventures (owned by Qatar Foundation and Qatar Investment Authority) the main shareholder of the project.
Ahmed Mekky, CEO of Gulf Bridge International was quoted as saying: "The timing of launching this investment is a success in itself. The GBI team, with the help of its advisors, succeeded in seizing the opportunity provided by the global downturn to significantly reduce the cost of building the network."
