Successful closure of AED 3 Billion syndicated loan for du
27 July 2008
Dubai, United Arab Emirates, 27th July: Mashreq and WestLB AG, acting as Mandated Lead Arrangers and Bookrunners today announced the successful closure of an AED 3 billion syndicated term loan facility for leading telecoms provider, du (Emirates Integrated Telecommunications Company PJSC).
The deal represents the debut debt offering for the UAE’s second telecommunications operator – a three year facility that will help finance du’s mobile and fixed network expansion.
Mr. Osman Sultan, CEO, du said “With the global credit markets all experiencing significant pressure, we are especially pleased to see the level of international and regional participation into this syndication which shows the confidence that has been placed by the financial community in our company. We have already a proven track record of delivering our promises and this has been reflected in the success of this transaction.
“Telecom is one of the most exciting sectors across the region currently, with vast opportunities arising from market liberalization, fast paced technology development and a rapidly growing population. The combination of a well structured transaction, a credit worthy borrower and wide placement capabilities of the lead arrangers made it possible to generate strong demand for a competitively priced transaction under challenging market conditions,” stated Mr. Abbas Hasan, Head of Investment Banking at Mashreq.
“The successful syndication of a AED 3 billion facility during volatile market conditions and a tightening loan market is an excellent testament to the credit worthiness of du and the partnership formed between WestLB and Mashreq,” stated Richard Hill, Head of Global Loan Syndications & Debt Placement, EMEA, WestLB. “The results reinforce both parties as two leading banking institutions with the ability to structure and syndicate deals originated from the most prominent corporate entities in the region to the international banking market.”
The following banks joined the syndication:
Mandated Lead Arrangers & Bookrunners
| Mashreqbank psc | WestLB AG, London Branch |
Mandated Lead Arrangers
| Arab Bank for Investment and Foreign Trade |
| First Gulf Bank |
| National Bank Of Abu Dhabi PJSC |
| Royal Bank Of Scotland PLC |
Lead Arrangers
| Abu Dhabi Commercial Bank PJSC |
| Export Development Canada |
| Invest Bank PSC |
| Samba Financial Group, Dubai Branch |
Arrangers
| Arab African International Bank | |
| Arab Bank Plc | British Arab Commercial Bank Ltd |
| Bank Sohar SAOG | Chang Hwa Commercial Bank Ltd. |
| Union National Bank | Banque Misr |
A ceremony, attended by senior management officials from du and the participating banks, was held at the Burj Al-Arab in Dubai to sign the facility documentation and celebrate the conclusion of the successful syndication.