Du secures US$220 million three-year loan facility

UAE telco Du has signed a new club financing deal for a US$220 million three-year loan facility as part of its ongoing capital optimisation programme.

The loan will be used to both assist in the repayment of an existing loan facility, due for repayment on June 30, 2011, whilst also providing for the continued investment of the company. The remaining balance of the existing facility will be settled using the company’s current resources.

National Bank of Abu Dhabi, Emirates NBD Bank and Samba Financial Group were appointed mandated lead arrangers for the facility, with Mashreq Bank acting as co-arranger. The deal carries a margin of 1.45 per cent per annum over London Interbank Offered Rate (LIBOR).