UAE-based operator Etisalat has reportedly launched its debut bond offering, split in four euro and dollar tranches and worth around US$4.2bn.
The issue will be used to finance Etisalat’s recent Maroc Telecom acquisition.
The two euro tranches are…
UAE-based operator Etisalat has reportedly launched its debut bond offering, split in four euro and dollar tranches and worth around US$4.2bn.
The issue will be used to finance Etisalat’s recent Maroc Telecom acquisition.
The two euro tranches are valued at €1.2bn (US$1.6bn) each. One of them matures in seven years and was priced at 80bps over midswaps. The other tranche is due in 2026 and was priced at 110bps over midswaps, according to documents from lead arrangers quoted by Reuters.
The two dollar tranches are worth US$500m each. Pricing for the five-year dollar bond was set at 67.5bps over midswaps while the 10-year offering priced at 87.5bps over midswaps.
The company was not immediately available for comment.
Late last month, Etisalat said banks would organise a series of fixed income investor meetings in the UAE, Asia and Europe, starting in June, to market a bond issue.
Deutsche Bank, Goldman Sachs, HSBC and RBS were said to be mandated to arrange the debut bond, although the company did not confirm the names of the banks.
Before that, it completed the listing of its US$7bn global medium term note programme on the Irish stock exchange. The programme enables the operator to issue one or more series of conventional bonds in any currency.
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, which was expected to soon be replaced with a bond.
