Etisalat seeks $2 billion loan - report

UAE telco is seeking a loan for general corporate purposes, according to Reuters
Etisalat is believed to be seeking a $2bn loan facility.
Etisalat is believed to be seeking a $2bn loan facility.

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UAE telco Etisalat Group is seeking a syndicated loan worth up to $2 billion for general corporate purposes, according to a report from Reuters, which cited bankers close to the deal.

The loan is expected to be repaid after a period of about three years, although this is subject to change, the report added, citing the same banking sources.

Etisalat had lined up a $12 billion loan in early 2011 as part of its bid for a 46% stake in Kuwait’s Zain Group, although it abandoned the plan in March 2011.

Etisalat’s last completed loan was a $3 billion, 364-day debut revolver signed in July 2006 via Barclays, Citigroup, Deutsche Bank and HSBC, according to Thomson Reuters LPC.

News of Etisalat’s plan to secure a loan follows closely from the telco’s announcement on Monday that it was mulling restructuring and outsourcing options in a bid to cut costs.

In June 2011, Du, Etisalat’s rival in the UAE, said it had closed a $220 million loan to help in the repayment of an existing loan and fund its expansion.

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