QTEL Successfully Secures New US$ 2 Billion Dual Tranche Revolving Credit Facility

Qatar Telecommunications (Qtel) announced the closing of the senior phase of a new dual tranche revolving credit facility.

Qtel’s original intention was to raise up to US$1.5 billion by approaching its core relationship banks. But due to an extraordinary response Qtel received commitments in the amount of US$2.75 billion, leading to oversubscriptions of 83%.

Due to this extraordinary result, the Company has decided to increase the facility amount to US$2 billion and to structure the tenor as follows:

1. US$ 1,250 million due in 2013; and

2. US$ 750 million  due in 2015.

The facility will be used for general corporate purposes including the refinancing of an existing US$ 2.0 billion Forward Start Facility signed in 2009 which matures in November 2011.

The facility was arranged by the following banks: BNP Paribas, DBS Bank Ltd., Qatar National Bank S.A.Q., Societe Generale Corporate & Investment Banking and The Royal Bank of Scotland plc.  They were joined by Barclays Capital, The Bank of Tokyo-Mitsubishi UFJ Ltd., Citibank NA, Deutsche Bank AG, HSBC Middle East Ltd., Samba Financial Group, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and West LB AG as Initial Mandated Lead Arrangers. Qatar National Bank acted as the General Financial Adviser to Qtel.

This is the first syndicated corporate loan deal with a five-year tenor to be completed in the GCC since September 2008 . Similar to what Qtel achieved with the GCC’s first Forward Start Facility and the first telecom corporate bonds last year, Qtel is now reopening the five-year tenor market segment in the GCC.

His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel, said: “The commitment from Qtel’s core banks is phenomenal. Qtel’s vision and strategy attracts many banks who want to participate and support our long term strategic targets. The strong commitment of the international banks in this new facility also reflects the strength and trust of the Qatari economy and Qtel as one of its key flag-ship companies.”

The facility is expected to be launched into general syndication shortly to invite other lenders to participate in this successful transaction.

Source: Qatar Exchange