The BI-ME eNewsletter
LOGIN:
Qatar Telecommunications in US$2 billion forward start loan
Source: BI-ME and Reuters , Author: BI-ME staff
Posted: Sun September 20, 2009 1:02 pm
www alibaba.com
Meet worldwide manufacturers, wholesalers
& importers
in Alibaba now!

QATAR. Qatar Telecommunications is in the process of signing a US$2 billion forward start loan, reported Reuters, citing banking sources close to the deal.

Qtel announced in March it had signed the US$1.5 billion forward start agreement on a revolving credit facility maturing in November, extending the credit by two years.

Bankers said at the time the borrower would like US$2 billion and general syndication would be used to raise the remaining amount, adding that the loan pays a margin of 250 basis points (bps) over LIBOR.

The deal was well received by the market and raised US$3 billion in syndication, bankers said in August.

Under a forward start agreement lenders typically agree to extend existing loans at final maturity in return for a hefty increase in pricing on the existing credit.

Initial mandated lead arrangers and bookrunners are Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, BNP Paribas, DBS and Royal Bank of Scotland, while Qatar National Bank is initial mandated lead arranger and financial adviser.

Banking sources close to the deal said in March each of the banks committed $200 million for a fee of 200 bps.

International Bank of Qatar, JP Morgan Chase, Arab Bank, Doha Bank and Housing Bank for Trade and Finance also joined the deal with smaller tickets to take the total to US$1.5 billion, the sources said.

The original three-year US$2 billion revolving credit facility was arranged by mandated lead arrangers and bookrunners Barclays and Royal Bank of Scotland in November 2006 and paid a margin of 22.5 bps over LIBOR.

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 9, 2010
UAE. Location and quality are driving apartment prices; while average prices decreased, select communities, including Palm Jumeirah and Downtown Burj Dubai, experienced slight increases according to Landmark Advisory's latest quarterly report.
date:Posted: February 8, 2010
INTERNATIONAL. Trying to achieve financial goals by pouring all of one's assets into emerging markets today, telecommunications tomorrow, and Japanese small-cap stocks next week is not a guarantee for achieving a sound financial plan.
date:Posted: February 8, 2010
INTERNATIONAL. The latest survey shows 46% of respondents expect their business travel to increase, marking a rise by 22 points compared with figures of the same period in 2009.
UAE. Location and quality are driving apartment prices; while average prices decreased, select communities, including Palm Jumeirah and Downtown Burj Dubai, experienced slight increases according to Landmark Advisory's latest quarterly report.