Du secures Dh3bn loan for network investment - Emirates24|7

Du secures Dh3bn loan for network investment

CEO Osman Sultan (SUPPLIED)

Phone operator du has secured financing arrangements to support increased network investment.

It has arranged a Dh3 billion medium-term syndicated loan facility.

“We are pleased to have secured our medium-term funding requirements through working closely with Mashreq, whom we have appointed to lead the transaction on our behalf,” said CEO Osman Sultan.

“The faster acquisition of subscribers, and consequently increased revenue, over and above that included in our initial business plan has led us to pull forward certain capital expenditure. This financing facility will enable us to roll out our network infrastructure faster so that we have the increased capability and capacity required to deliver our services to more customers across the emirates.”

Omar Bouhadiba, head of Mashreq’s Corporate and Investment Banking Group, said: “We are delighted to be working with du. In underwriting this facility, we have shown our commitment to the UAE’s second telecom operator.

“We are very pleased to lead the transaction for one of the foremost listed companies in the country, which carries behind it the ownership strength of the UAE Government.

“In a very short period of time, since its inception, du has surpassed all expectations and built up an enviable franchise. Having led a number of high-profile transactions in recent months, Mashreq will secure a successful syndication for du.”

It is expected that the facility will be syndicated to local and international financial institutions over the coming three months.

Du launched its mobile service across the UAE in February 2007 as well as internet and pay TV services in some of Dubai’s free zones. Call Select, the first of du’s nationwide fixed-line services for voice telephony, followed last July.

Du has introduced a number of innovations including a number booking campaign for both individuals and business, pay-by-the-second billing, mobile TV, mobile payments and the WoW recharge card. Offerings to businesses include the closed business user group and preferred international destinations.

Du is 40 per cent owned by the UAE Government, 20 per cent by Mubadala, 20 per cent by Tecom and 20 per cent by public.