Etisalat issues $4.3bn bond

16 June 2014

UAE operator raised $1.35bn more than originally targeted

UAE telecommunications operator Emirates Telecommunications Corporation (Etisalat) has issued a bond of $4.3bn.

The notes have been issued in tranches of €2.4bn ($3.3bn) and $1bn, with the euro-denominated notes maturing in 2021 (€1.2bn) and 2026 (€1.2bn). The dollar-denominated notes will mature in 2019 ($500m) and 2024 ($500m).

“The issue proceeds, approximately €1bn higher than originally targeted by the company, are being used to refinance existing loans to fund the acquisition of [a 53 per cent stake in] Maroc Telecom. This will improve Etisalat’s debt maturity profile given the fairly short tenor of these existing loans,” according to Fitch Ratings, which gave the bond an A+ rating.

The Abu Dhabi Securities Exchange-listed company also signed a syndicated loan worth about €3.2bn to finance the transaction at the end of April.

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