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Tue 24 Apr 2012 03:30 PM

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Qtel says it will use cash to pay off 2012 debt

Qatar telecoms operator says it is not "undertaking" any refinancing options

Qtel says it will use cash to pay off 2012 debt
Qtel Group CEO Dr Nasser Marafih.

Qatar Telecom (Qtel) will use its own cash to pay off any debts maturing in 2012 and is not "undertaking" any refinancing options currently, the former monopoly said on Tuesday.

"Qtel does not have any immediate refinancing requirements and accordingly is not undertaking any refinancing at this time," the state-controlled company said in an emailed statement. "Current year maturities will be addressed using cash on hand."

On Monday, Reuters Loan Pricing Corp, a Thomson Reuters unit, reported Qtel had sent requests for proposals to international lenders for a US$2bn refinancing loan. This was slated to be used to pay off a US$3bn, five-year loan signed in 2007 that matures this October.

The top-rated company was seeking to split financing between a US$1bn standby commercial paper facility and a US$1bn revolving credit facility, bankers earlier told RLPC, a Reuters .

"As part of its ongoing financial management strategy, Qtel continually looks to optimise its funding options as part of its capital structure management," the statement added.

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