Business | Banking

mashreq and WestLB arrange Dh3b syndicated loan for du

mashreq and WestLB, acting as mandated lead arrangers and bookrunners, on Sunday announced the successful closure of a Dh3 billion syndicated term loan facility for telecoms provider du (Emirates Integrated Telecommunications Company).

  • Staff Report
  • Published: 23:49 July 27, 2008
  • Gulf News

Dubai: mashreq and WestLB, acting as mandated lead arrangers and bookrunners, on Sunday announced the successful closure of a Dh3 billion syndicated term loan facility for telecoms provider du (Emirates Integrated Telecommunications Company).

The deal represents the debut debt offering for the telecommunications operator - a three-year facility that will help finance du's mobile and fixed network expansion.

Participation

"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," Osman Sultan, chief executive of du, said in a statement.

"Telecom is one of the most exciting sectors across the region currently, with vast opportunities arising from market liberalisation, 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," said Abbas Hasan, head of investment banking at mashreq.

A total of 16 banks joined the syndication.

Testament

"The successful syndication of a Dh3 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," said 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," he added.

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