Closed:

December 2005

Client:

Celtel Kenya

Beneficiary:

 Note Trustee (through FMO as fronting agent)

Financing:

Kenyan Shilling 4.5 billion bond (USD 50m) to finance network expansion.  The issue benefited from a 75% guarantee

Type of Guarantee:

 Partial Credit Guarantee covering scheduled debt service for a bond issue up to 75% of the principle amount

GuarantCo involvement:

 USD 10m equivalent out of a total equivalent guarantee of USD 35m

Co-Guarantors:

FMO and DEG

Development Aspect:

The developmental aspect of mobile communications has been well documented.  Only the third commercial bond issued in Kenya and largest at that time.  Prepaid in February 2007 through a refinancing without the need of credit enhancement