Qatari incumbent Qatar Telecom (Qtel) reportedly plans to obtain a US$2bn loan to refinance an existing facility.
Qtel has already sent requests for proposals to international lenders and plans to split the financing between a US$1bn standby …
Qatari incumbent Qatar Telecom (Qtel) reportedly plans to obtain a US$2bn loan to refinance an existing facility.
Qtel has already sent requests for proposals to international lenders and plans to split the financing between a US$1bn standby commercial paper facility and a US$1bn revolver, according to IFR, citing a European banker.
The report stated Qtel – the Gulf region’s third largest telecoms operator – will use the funds to refinance a US$3bn five-year loan set to mature in October. The underwriters for this loan were BNP Paribas, Barclays, Development Bank of Singapore and RBS.
Earlier this year, Qtel publically revealed its new strategy, stating it aims to be among the top 20 telecoms firms in the world by 2020.
Group CEO Nasser Marafih recently told TelecomFinance the company plans to grow organically, via acquisitions and by increasing its holdings in existing operations.
Asked how Qtel will finance mergers and acquisitions, Marafih said: “It will depend on the size and nature of the opportunity. Previous investments have been financed through a mixture of existing cash, external credit facilities and shareholder loans” (for the full interview see the current edition of TelecomFinance, issue 200).
Between 2007 and 2010, Qtel – which has an A rating with Standard & Poor’s, an A2 rating with Moody’s and an A+ rating with Fitch – obtained loans of at least US$2bn on an annual basis.
Qtel was not immediately available for comment.
