Du launches syndication of Dh3bn loan - Emirates24|7

Du launches syndication of Dh3bn loan

Dubai-based telecom firm du has launched syndication of a Dh3 billion loan via mandated lead arrangers and bookrunners Mashreq and WestLB, a banking source said.

Proceeds will be used to finance the company's retail network across the UAE. The three-year loan pays a margin of 125 basis points (bps) over Libor.

In syndication banks are invited to commit $60 million equivalent for an upfront fee of 60 bps, $40m for 45 bps, or $20m for 30 bps. Last month, du said it had two million mobile phone customers as of May 23, 15 months after breaking the monopoly of Emirates Telecommunications Corp (etisalat). The first-quarter revenue grew as the number of active mobile phone users rose to 1.4 million.