Dubai's du inks $100m financing deal

Emirates Integrated Telecommunications Company, also known as du, said on Sunday it has signed a $100m financing deal to fund its capital investment in the business.

The Dubai-based telco signed the investment agreement with the Dubai branch of Singapore-based DBS Bank, it said in a statement.

Pranam Wahi, managing director and head of DBS Middle East, said: "DBS is pleased to partner with Du as the company continues with its solid growth plan.

"As a bank born and bred in Asia, we understand the intricacies of doing business in the region's most dynamic markets and we are committed to helping our clients succeed."

Osman Sultan, CEO of du, added: "Our commitment to investment in innovation, products and services has been a key driver of growth. We are confident that Du is well positioned to continue to maximise growth opportunities going forward and to achieve this will require investment in key areas of our business.

"The nature of our business is that it requires sustained investment in infrastructure. This financing is an essential part of our ongoing programme of capital investment that in this case will fund the acquisition of equipment from Huawei to enhance network performance and operations in HSPA+, LTE and Advanced LTE," he added.

During the first nine months of 2012, du invested AED1.1bn in its network, Sultan said.

In October, du reported a 34 percent rise in third-quarter net profit.

The firm, which ended rival Etisalat's domestic monopoly in 2007, made a net profit after royalty of AED326.9m ($89m) in the three months to September 30, compared with AED244.3m in the year-earlier period.