UAE operator Etisalat has issued its debut US$4.24bn bond, split in four euro and dollar tranches.
Proceeds will be used to finance its recent Maroc Telecom acquisition.
The two euro tranches are valued at €1.2bn (US$1.6bn) each. One of them…
UAE operator Etisalat has issued its debut US$4.24bn bond, split in four euro and dollar tranches.
Proceeds will be used to finance its recent Maroc Telecom acquisition.
The two euro tranches are valued at €1.2bn (US$1.6bn) each. One of them matures in seven years, has a 1.75% annual coupon rate and was priced at 80bps over midswaps. The other tranche is due in 2026, carries a 2.75% coupon and was priced at 110bps over midswaps.
The two dollar tranches are worth US$500m each. Pricing for the five-year 2.375% dollar bond was set at 67.5bps over midswaps while the 10-year offering priced at 87.5bps over midswaps and carries a 3.5% coupon rate.
The bond was issued under a recently-established US$7bn global medium term note programme listed on the Irish stock exchange.
Deutsche Bank, Goldman Sachs, HSBC and RBS are said to have been mandated to arrange the offering, although the company did not confirm the names of the banks.
Moody’s rated the offering Aa3, S&P gave an AA- and Fitch an A+.
In May, Etisalat closed the purchase of a 53% stake in Maroc Tel from Vivendi for €4.1bn.
To finance the deal, Etisalat signed a €3.15bn (US$4.36bn) loan agreement with 17 local, regional and international banks, €2.1bn of which came in form of a bridge loan. The financing will now be replaced with the bond.
