Du poised to borrow $817mn for expansion
Second largest telecom company in UAE due to announce deal on Sunday.
Du, the second telecom operator in the UAE, is to borrow $817 million in syndicated loans to finance its infrastructure expansion, according to a top company official.
The successful closure of the deal with a group of banks, led by Dubai-based Mashreq, is expected to be announced on Sunday in Dubai, Emirates Business 24/7 reported.
Du CEO Osman Sultan told the paper that the company will raise its capital expenditure to $544 million by the end of the year to fund its infrastructure upgrade that will improve its coverage and services.
Du has continued its extensive capital expenditure programme, expanding both its fixed and mobile networks, and invested $133 million in the quarter ended June 30, 2008, bringing year-to-date investment to $241 million.
The loan deal will make Du the first telecom operator in the UAE to go to the syndication market.
Oman Telecommunications Company (Omantel) was the first GCC government-owned operator to raise funds through this route.