International Datacasting Secures Wananchi Contracts and Financing for DTH Broadcast ServiceMonday, July 25th, 2011
OTTAWA, ONTARIO — International Datacasting Corporation (TSX:IDC), a leader in digital content distribution solutions for the world’s premiere broadcasters, today announces a vendor financing package, and follow on contracts with the Wananchi Group Ltd., for the rollout of a Direct-to-Home (DTH) broadcast service in Africa.
International Datacasting announces that it has successfully secured a vendor financing package, which establishes a revolving credit facility for Wananchi. This credit facility was developed in cooperation with Export Development Canada (EDC) and a Canadian financial institution.
Wananchi Group Ltd. launched the first triple-play network in Africa, and recently added Zuku Satellite to bring video, voice and data services to consumers in the Sub-Saharan region of Africa.
Richard Essex, Chief Development Officer of East Africa Capital Partners (EACP), and Africa Telecommunications Media and Technology Fund (ATMT) stated, “We believe that this unique structure acts as an important cornerstone for our relationship going forward. Canadian technology is already playing a key role for Wananchi as it launches its pay TV service. We have broken new ground and as the business grows, we look forward to this facility growing along with it.”
EDC’s July 2010 investment in ATMT under its international equity program, along with this new credit facility, demonstrates EDC’s continued participation in investment opportunities in East Africa.
In addition to financing, IDC was awarded two new contracts worth nearly US$1 million. The first contract is a multi-year Support Agreement for equipment and software support, valued at US$299,000 in the first year. The second contract, valued at US$591,000, covers a 12-month period for the supply of Operations and Technical Assistance for the Zuku DTH satellite platform in Kenya.
“IDC and Wananchi worked well together with EDC to structure this unique financing,” stated Frederick Godard, President and CEO, IDC. “This is an important step in the growth path of IDC Systems Group. We will look to expanding this credit facility for Wananchi, and to pursuing other viable opportunities within this new framework.”
In June 2010, IDC announced an initial contract with Wananchi that includes broadcast products, and IDC Systems Group services for the development, build and roll-out of the network. The contract includes head-end equipment that will enable a satellite-to-set-top box distribution platform for the delivery of a secure broadcast system to homes throughout the region.