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Thu 11 Nov 2010 03:36 PM

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Etisalat to create $8bn bond programme

Gulf's second largest telecoms group said $8bn bond programme will allow it to tap debt markets when needed

Etisalat to create $8bn bond programme
SHRINKING OPPORTUNITIES: Etisalat sees shrinking investment opportunities in Morocco after France Telecom beat it to a stake in local operator, Meditel. (Getty Images)

Etisalat, the UAE telecoms operator, said on Thursday it
had created an $8bn bond programme to allow it to issue conventional or Islamic
bonds in the global debt markets when needed.

The state-backed telco has established a $7bn global
medium term note (GMTN) programme and a $1bn sukuk programme, it said in a
statement to the Abu Dhabi bourse.

The move will allow Etisalat to “[access] a large pool of
global investors to diversify its funding sources and manage its debt
management profile effectively,” it said in the statement.

Etisalat, the Gulf's second largest telecoms group, offered in September to buy a 46 percent stake in Kuwait's Zain for $6.07 a share, in a deal worth just under $12bn.

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