Du seals $207 million credit facility

UAE telco gains credit for investment in 2G and 3G networks

Tags: Emirates Integrated Telecommunications Company FinanceNokia Siemens NetworksUnited Arab Emirates
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Du seals $207 million credit facility Osman Sultan, CEO, Du, said the funding will be used to expand network capacity to meet growing demand in the UAE. (ITP Images)
By  Roger Field Published  September 15, 2010

Du has entered into a $207 million financing agreement with KfW IPEX-Bank, part of German KfW Bankengruppe, to buy products and services from network vendor Nokia Siemens Networks.

The deal, which was arranged by Nokia Siemens Networks and backed by Euler Hermes, an export credit agency based in Germany, will allow Du to continue to expand and upgrade its 2G and 3G networks.

Osman Sultan, CEO, Du, said that the deal would allow the telco to meet a growing demand for "improved coverage and capacity" in the UAE.

"This financing deal [...] will enable us to carry on meeting this demand head on," he said.

The deal is the latest initiative this year from Du to raise funds for expansion. In June, Du completed a rights issue that raised AED1 billion ($272 million) to fund ongoing growth.

In February, Du struck a EUR200 million ($269 million) vendor financing agreement with Nokia Siemens Networks in a deal backed by Finnvera, a financing company owned by the State of Finland.

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