Du signs Dh808m finance deal

Dubai-based telecom operator Emirates Integrated Telecommunications (du) today announced the signing of a new club financing deal for a $220m (Dh808.5m) three-year loan facility to help it repay a Dh3bn debt that becomes due for repayment by the end of this month.

“Some of the loan facility will be used to repay the existing Dh3b loan that becomes due at the end of June, and the rest will be used to fund our ongoing investment,” said Osman Sultan, CEO of du, in a statement posted on the Dubai bourse website.

The deal carries a margin of 1.45 per cent per annum over LIBOR, the statement said. “This facility is the latest part of our financing strategy, and further strengthens the company’s financial and operating position,” Sultan added.

“The financial arrangements put in place over the past year, including the rights issue that was oversubscribed last June; the strategic vendor financing agreements; and this club loan facility, have all provided du with significant capital that will be deployed to facilitate our transition as we mature into the next phase of our development,” he said.

Follow Emirates 24|7 on Google News.