Sunday 23 January 2011

Etisalat Plans to Depend on Bank Loans in $12 Billion Offer for Zain Stake - Bloomberg

Emirates Telecommunications Corp., the biggest phone company in the United Arab Emirates, plans to finance its $12 billion offer for control of Kuwait’s Mobile Telecommunications Co., in three stages of loans.

“The first $6 billion will be a bridge loan, payable in 18 months,” Chief Financial Officer Salem al Sharhan said in a phone interview today. The Abu Dhabi-based company will also borrow $3 billion payable in three years and another $3 billion payable in five years, he said. The $6 billion bridge loan will be refinanced through bonds and sukuks, al Sharhan said.

The company, also known as Etisalat, has agreement from 18 international and regional banks on the initial term-sheet for the loan, he said. The majority of the banks are international lenders with four regional players, including Saudi Arabia’s Samba Financial Group, National Bank of Abu Dhabi PJSC, Emirates NBD PJSC, and National Bank of Kuwait, he said.

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