Qatar Telecommunications (Qtel) is refinancing a $2.5 billion loan to try to cut the cost of its acquisition of Kuwaiti operator National Mobile Telecommunications (Wataniya) in March.
Qtel’s profit fell 6.2% in the second quarter because of acquisition costs. The Kuwaiti operator’s contribution to profit in the quarter covered less than half Qtel’s debt financing costs of 278.66 million riyals ($76.54 million).
Qtel bought 51% of the Kuwaiti company for $3.72 billion.
Qtel began syndication of a $2.5 billion term loan to refinance the bridge facility taken in March, the company said in a statement on the Doha stock exchange website.
BNP Paribas, Barclays Capital and the Development Bank of Singapore are arranging the loan, two people familiar with the transaction said. Syndication is likely to be completed in the next month, one of them said.
Chief financial officer Ajay Bahri said on August 7 Qtel could consider selling bonds to refinance some of the debt. Qtel does not have a credit rating.
Qtel also agreed a $2 billion credit facility last year and used it to pay for part of the Wataniya stake and the January purchase of a 25% stake in Asia Mobile Holdings, a unit of Singapore’s Technologies Telemedia.
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