Dubai-based telecoms operator du has secured a $1.17bn loan in three separate deals to refinance existing debt facilities. The company is looking to save $9m in total with the new package.
The deal includes a $720m package from Abu Dhabi Commercial Bank (ADCB), National Bank of Abu Dhabi (NBAD) and Saudi Arabia’s Samba Financial Group. This five-year facility will be used to replace two existing debt facilities.
Du has also secured a $300m five-year loan from the UK’s Standard Chartered Bank to fund equipment purchases. It includes the refinancing of the existing £100m (Dh611.1m) facility held with the bank plus an additional $200m of new facilities.
DBS Singapore is providing a three-year loan of $150m for equipment purchases too which includes $100m facility currently held with them and another $50m of new facilities.
“We have taken the opportunity of the historical low interest rate environment to refinance some of our existing debt and have been able to negotiate very favourable terms strengthening our balance sheet further,” said Osman Sultan, chief operating officer at du. “In addition, as we continue to roll out our data offerings, we have secured additional financing for our capital expenditure programme, again at very competitive rates. The structure of this financing will save us $9m in costs, increasing shareholder value and providing scope for future growth.”
All the loans carry an in-all cost of 140 basis points (bps) over the London interbank offered rate (Libor).
thamid@thenational.ae
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