Du signs debut $817mn loan

Dubai-based telecom signs loan to finance retail network across the United Arab Emirates.

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By  Christopher Mangham Published  July 28, 2008

Dubai-based telecom company Du has signed a 3 billion dirham ($817 million) loan via mandated lead arrangers and bookrunners Mashreq Bank and WestLB, the lenders announced.

It is the borrower's first syndicated loan.

Proceeds will be used to finance the company's retail network across the United Arab Emirates.

As reported in June, the three-year loan pays a margin of 125 basis points (bps) over LIBOR.

In syndication banks were invited to commit $60 million-equivalent for an upfront fee of 60 bps, $40 million for 45 bps, or $20 million for 30 bps.

Du had 2.3 million mobile phone customers as of June 30, 16 months after breaking the monopoly of Emirates Telecommunications Corp (Etisalat) . (Reuters)

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