Financing includes an $800m one-year revolving credit and a $400m one-year term loan
Mobile Telecommunications Co, the Kuwaiti phone company known as Zain, started syndicating $1.2bn of loans for general corporate purposes, two people familiar with the situation said.
The financing includes an $800m one-year revolving credit that can be extended twice and a $400m one-year term loan, said the people, who declined to be identified because the deal is private. Money in a revolving credit can be borrowed again once it’s repaid; in a term loan, it can’t.
Zain is offering to pay interest rate of 160 basis points more than the London interbank offered rate on money it draws from the revolving credit and a margin of 100 basis points for the term loan, said the people. A basis point is 0.01 percentage point.
Citigroup Inc, BNP Paribas SA, Credit Agricole CIB, National Bank of Kuwait, Standard Chartered Plc, Arab Bank Plc and WestLB AG are arranging the financing, the people said.
Zain spokesman Antoine Abou Khalil didn’t comment outside of normal business hours when contacted by email.
The company sold assets in 15 African countries, excluding Morocco and Sudan, for $9bn to Bharti Airtel Ltd in June.