UAE operator Etisalat is reportedly considering launching a bond offering of up to US$500m before the end of the year, following its US$4.24bn debut bond issuance in June.
Etisalat is in the process of negotiating the terms of the bond, Arabian Business…
UAE operator Etisalat is reportedly considering launching a bond offering of up to US$500m before the end of the year, following its US$4.24bn debut bond issuance in June.
Etisalat is in the process of negotiating the terms of the bond, Arabian Business cited a global banking source as saying. According to the source, terms are likely to be similar to those of its debut bond, issued under a recently-established US$7bn global medium-term note programme listed on the Irish stock exchange.
Proceeds will be used to improve the telco’s network infrastructure, the source said.
Etisalat was not available for comment.
Proceeds from the US$4.24bn bond, spilt into two euro and two US dollar tranches, were used to finance the telco’s €4.1bn purchase of a 53% stake in Maroc Telecom.
The two euro tranches were each valued at €1.2bn. One, maturing in seven years, has a 1.75% annual coupon the other, maturing in 2026, carries a 2.75% coupon. The two dollar tranches were each worth US$500m. The five-year tranche has a 2.375% coupon and the ten-year tranche a 3.5% coupon.
Moody’s rated the offering Aa3, S&P gave an AA- and Fitch an A+.
