We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 30 Aug 2012 12:12 PM

Font Size

- Aa +

Qatar Telecom repays $3bn loan facility

Qtel is currently in talks to acquire remaining 47.5 percent stake in Wataniya

Qatar Telecom repays $3bn loan facility

Qatar Telecom (Qtel), the state-owned operator planning a full takeover of Kuwaiti unit Wataniya, has repaid a US$3bn loan facility using existing funds, it said in a bourse statement on Thursday.

The five-year syndicated term loan was signed in August 2007 through bookrunners Barclays, BNP Paribas, DBS and RBS and was priced at 65 basis points over the London interbank offered rate (Libor), according to Thomson Reuters data.

In January, the company said in a capital markets presentation that its issue of US$2.75bn in bonds in 2010 preemptively addressed the refinancing of the US$3bn 2012 loan.

Qtel, which operates in 16 countries across the Middle East, Africa and Asia, is presently in the midst of talks to acquire the remaining 47.5 percent stake it does not already own in Kuwaiti telecom company Wataniya for US$2.2bn, as the state-owned operator eyes acquisitions to ward off threats from rivals.

The operator has been raising stakes in its subsidiaries, taking advantage of the gas-rich Gulf state's healthy financial position at a time when other large telecom firms are shying away from deals.

The company reported a fall in second-quarter profit of 11.3 percent attributable to foreign exchange losses at its Indonesian and Algerian units and weaker profits in Kuwait and Oman.

Shares in Qtel are up nearly 13 percent so far this year. They were trading 0.6 percent higher at 0650 GMT on the Doha bourse Thursday.

Arabian Business: why we're going behind a paywall

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.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.