Etisalat raises $1.2 billion in bond sale

Publish May 10, 2021
telecom

Etisalat said its refinancing decision aims to diversify the company’s sources of funds and extending the repayment schedule of existing debt while taking benefit of improved cost of funding thereby maximising shareholders value

The telecoms operator issued bonds in two tranches, the first is a seven-year tranche amounting to 500 million euros with an annual yield of 0.4 per cent. The second tranche for a period of 12 years amounts to 500 million euros with a coupon rate of one per cent.

In a statement, Etisalat said its refinancing decision aims to diversify the company’s sources of funds and extending the repayment schedule of existing debt while taking benefit of improved cost of funding thereby maximising shareholders value.

“The bond issuance was very successful as it witnessed a remarkable demand from local and international investors with being six-times oversubscribed.”

This high demand reflects investors’ confidence in Etisalat Group’s performance, strong financial profile and credit ratings; Aa3 stable (Moody’s) and AA- Stable (S&P Global), one of the highest rating in the industry. This also highlights the growing confidence of international investors in the UAE economy, the telecoms operator said.

In 2020, Etisalat made an annual net profit after federal royalty of Dh9 billion, an increase of 3.8 per cent compared to the previous year, on revenues of Dh51.7 billion.

In the UAE, its subscriber base reached to 12.2 million, while the group’s aggregate subscribers reached 154 million, a year-on-year increase of 3.6 per cent.

khaleejtimes

Latest Stories

Yemen central bank shuts firms linked to currency crash

2020-12-03 04:00:00

AL-MUKALLA: Yemen’s central bank has closed 30 private exchange firms for violating currency speculation rules after the Yemeni"...
Read More

Yemen, Emergency review plans equipping medical center in Hajjah

2020-11-26 04:00:00

HAJJAH, Nov. 25 (Saba) - Yemen and the Italian 'Emergency' organization have discussed the plans to implement the 2nd stage"...
Read More

Irish dairy farmers' milk donations raise over €100k for famine-hit Yemen

2020-11-16 06:00:00

A campaign to encourage Irish dairy farmers to raise funds for those affected by war and famine in Yemen has so far raised more than"...
Read More

Two service projects begin in capital Sana'a

2020-11-10 04:00:00

SANA'A, Nov. 09 (Saba) - Deputy Prime Minister for Services and Development Affaires Hussein Maqbouli and capital Sana'a"...
Read More