Agreement with banks lowers the company's funding costs, saving approximately $9m
United Arab Emirates telecommunications firm du has borrowed $1.17bn in three separate deals to refinance existing debt and fund equipment purchases, the company said on Tuesday.
The deals include a $720m package reported by Reuters last month and agreements with Standard Chartered Bank and DBS Singapore to refinance and top up existing loans.
"The move lowers the company's funding costs, saving approximately $9m over the term of the loan due to the favourable margins agreed with the banks involved," du said in a statement.
Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Saudi Arabia's Samba Financial Group have provided du with a $720m five-year facility.
Standard Chartered Bank has provided a $300m facility, which includes the refinancing of the existing $100m facility plus an additional $200m of new facilities.
DBS Singapore has provided a $150m facility, which includes refinancing the existing $100m facility plus an additional $50m of new facilities.
All loans carry an all-in cost of 140 basis points (bps) over the London interbank offered rate (Libor).For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.