Dubai's du inks $500m debt funding deal

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du CEO Osman Sultan.

du CEO Osman Sultan.

Dubai's du, also known as Emirates Integrated Telecommunications Company, said on Sunday that it had secured a $500m, five-year club debt facility to fund its medium-term capital expenditure.

Osman Sultan, CEO of du, said: "We are delighted to have agreed this club debt facility which builds on the announcement earlier this month of the $100m debt facility recently entered into.

"The funding provides us with the resource and financial flexibility to meet both short and medium term capital expenditure requirements, while at the same time enabling the company to achieve a more efficient capital structure.

"We are especially pleased to have been able to benefit from favourable market conditions to secure the facility at competitive rates and will continue to seize such funding opportunities in the future."

Abu Dhabi Commercial Bank acted as senior mandated lead arranger for the facility, with National Bank of Abu Dhabi and Samba Financial Group serving as mandated lead arrangers, the company said in a Dubai bourse filing. Mashreq Bank acted as co-arranger.

Du said the club debt facility was priced at a 1.75 percent margin over the London Interbank Offered Rate.

Last week du said it had signed a $100m, three-year loan facility with Singapore's DBS Bank to fund its capital investment plans.

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