June 14, 2024

UAE’s Etisalat Corp raises around $1.2Bn worth of overall proceeds via Euro Bond Sales

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The UAE’s telecom giant Etisalat Corp has announced that it will be utilizing the net proceeds for repayment of the existing debts or the maturing seven-years Euro tranche as in June.

The firm announced here on Sunday, that Abu-Dhabi backed telecom operator Etisalat have raised up €1 billion ($1.21bn) through the issue of the latest, euro-denominated bonds.

The UAE’s major telecom operator has issued €500 million of seven-year and €500mn of 12-year bonds, under their prevailing $10Bn Euro medium Term Note programme, the firm has stated out the same in a statement to the Abu Dhabi’s National Securities Exchange, wherein it shares the trade. It further added as well that these proceeds will be utilized for repayment of a €1.2 billion bond debt that matures in June.

Etisalat further stated that, “The bonds issuance was completed after conducting roadshows with international investors on 4 and 5 May. The dual-tranche issue was more than six times oversubscribed.”

The seven-year tranche offers a yearly interest rate of 0.4 percent, while the 12-year tranche has a token rate of 1 percent. Etisalat, the telecom giant in the Middle East had upsurged their foreign ownership boundary from 20 percent to 49 percent within the January for luring in better external investors, reporting a 3.8 percent upsurge in overall profit valued at Dh9.03Bn the preceding year despite a marginal plummeting in the revenues.

As per the Reuters study, HSBC, BNP Paribas, First Abu Dhabi Bank and Societe Generale represented as global controllers for the bond issue.

Establishments and administrations across the territory have taken benefit of record low interest rates to organize low-cost financing in debt markets.

In the initial quarter of the year, debt issuance from the Middle East and North Africa (MENA) soared 61 percent to touch the record figure of $34.8bn, the highest amount in a single quarter since records began in 1980, Refinitiv stated in its Mena Investment Banking review the preceding month.

The telecoms operator, which was recognized more than four decades ago and has its headquarters in Abu Dhabi, has 149 million subscribers in 16 nations in the Middle East, Africa and Asia. Sixty percent of the firm is possessed by the Emirates Investment Authority, while the remainder is glided on the ADX.

Prior to this month, Abu Dhabi National Energy Company, or Taqa, upstretched $1.5bn through a dual-tranche bond issuance to fund its low-carbon progression initiatives and procure back few of its outstanding corporate bonds.

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