Qtel’s Credit Facility oversubscribed by 157 Percent

Published May 17th, 2010 - 02:14 GMT

Qatar Telecom (Qtel) Q.S.C. (“Qtel” or “the Company”) (EPIC: QTEL.QA) is pleased to announce the successful closing of the General Syndication of its new USD 2 billion dual tranche revolving credit facility. In the General Syndication Phase 17 additional banks joined with commitments of US$ 1.11 billion. The total subscribed amount of USD 3.86 billion substantially exceeded the original target of US$ 1.5 billion.


His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel, said: “We are delighted about the huge success of our loan facility that has attracted such a strong response from investors across Qatar, The Middle East and internationally. An oversubscription of more than 150% of the original target demonstrates the appeal of Qtel to the financial community.”


Dr. Nasser Marafih, CEO, Qtel, commented: “We very much appreciate the continued strong support of our core relationship banks that have remained very committed in their support in these volatile market conditions. Our strategy to access the global banking community while maintaining a close relationship with our local and regional banks will be the basis for future expansion in line with our goal to become a Top 20 global telecommunication company by 2020.”


Ali Sharif Al Emadi, Group CEO of Qatar National Bank (QNB), said: “We are very proud to have contributed to the success of this syndicated credit facility.  Our role as Initial Mandated Lead Arranger, Bookrunner and General Financial Adviser to Qtel is a clear reflection of the confidence and trust placed on QNB’s credit standing and local and regional market leadership in syndications and advisory services.  Qtel’s overwhelming success with this international loan transaction is of even more significant given the current economic conditions, underscoring the company’s leadership and solid financial position”.


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 (together the “Bookrunners”). Qatar National Bank acted as the General Financial Adviser to Qtel.


The facility will be used for general corporate purposes including the refinancing of an existing US$ 2.0 billion Forward Start Facility.

This is the first syndicated corporate loan deal with a 5 year tenor to be completed since September 2008 in the GCC.

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