Du secures $255m financing agreement
Export credit facility with Chinese bank to repay existing short term loans
UAE telco Du has signed a $255 million financing agreement with the Export-Import Bank of China, allowing it to repay an existing short term $85 million loan and continue the expansion of its 3G network.
The agreement follows closely from a $207 million financing agreement Du agreed in September to buy products and services from network vendor Nokia Siemens Networks.
The latest facility, which was backed by the Chinese export credit agency Sinosure, will enable Du to turn its three year short-term borrowings into a more efficient seven year facility, based on a two year "draw down" and five year repayment plan, the telco said in a statement.
Osman Sultan, CEO, Du, said the agreement was part of a "carefully executed plan" designed to strengthen Du's finances.
"The ECA financing agreements we now have in place provide Du with a solid foundation to continue our infrastructure build out through our strategic equipment partners," Sultan said.
He added that the financing agreement would also allow Du to continue to roll out and improve its 3G network.
"We believe this will help us meet the demand for superior coverage and capacity in the UAE, which will further benefit Du's customer base," he said.