Du, the UAE’s second-largest phone operator, said Tuesday it had closed a $220 million loan to help in the repayment of an existing loan and fund its expansion.
The three-year club loan facility carries a margin of 1.45% per annum over LIBOR, the state-backed company said in a statement to the Dubai bourse.
“The loan will be used to both assist in the repayment of the existing loan facility, due for repayment on June 30, 2011, whilst also providing for the continued investment of the company,” the statement said. “The remaining balance of the existing facility will be settled using the company’s existing resources.”
The lead arrangers for the loan were National Bank of Abu Dhabi, Emirates NBD Bank and Samba Financial Group, Du said. MashreqBank was the as co-arranger.
Du plans to spend nearly AED1.7 billion ($463m) on infrastructure development in 2011, chief executive officer Osman Sultan said in April.
The firm has an estimated 40% share of the UAE mobile market.
