du to arrange AED 3 billion financing

Mashreq to lead AED 3 billion loan facility to fund future growth for du

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By  Mark Sutton Published  May 17, 2008

du has announced that it is arranging an AED 3 billion ($816m) loan facility to cover its future network expansion.

The medium term syndicated loan facility will be lead by UAE bank group Mashreq, with finance expected to be arranged with local and international institution over the next three months.

Osman Sultan, CEO of du, said: "We are pleased to have secured our medium term funding requirements through working closely with Mashreq whom we have appointed to lead the transaction on our behalf. The faster acquisition of subscribers, and consequently increased revenue, over and above that included in our initial business plan has led us to pull forward certain capital expenditure. This financing facility will enable us to roll out our network infrastructure faster so that we have the increased capability and capacity required to deliver our services to more customers across the Emirates."

Omar Bouhadiba, Head of Corporate & Investment Banking Group at Mashreq said: "We are delighted to be working with du. In a very short period of time, since its inception, du has surpassed all expectations and built up an envious franchise. Having led a number of high profile transactions in recent months, Mashreq will employ its vast experience and network to secure a successful syndication for du."

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