Interest amongst 20 banks for Etisalat’s US$12 billion loan

Around 20 banks are considering participating in the US$12 billion loan that Etisalat is seeking in order to fund its acquisition of a 46 per cent stake in Zain Group, an investment banking source told Comm. The banker said the operator is looking for a group of 12 lenders to underwrite US$1 billion each. Amongst the banks believed to be pitching for the deal are: Bank of Tokyo-Mitsubishi; BNP Paribas; Citigroup; Credit Agricole; HSBC; Societe Generale; Standard Chartered Bank; National Bank of Abu Dhabi; National Bank of Kuwait; and Royal Bank of Scotland.

He said the deal would include an 18-month bridge loan of US$6 billion, which would be refinanced by the issuance of bonds, which are part of Etisalat’s creation of an issuance programme of US$8 billion in November.

Additional reports, quoting individuals said to be familiar with the situation, suggest that Etisalat also plans to raise US$3 billion in a three-year loan and another US$3 billion for five years.