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.