Zain Group to raise US$1.5 billion in bond sale

Shareholders of Kuwait’s Zain have approved a bond sale plan to raise KWD 431.5 million (US$1.5 billion), as well as pay a dividend of 170 fils per share for the 2009 financial year.

“This does not mean we will issue the bonds after this approval, only in case we need it,” Zain Group chairman Asaad al-Banwan told shareholders at a meeting on May 27. “We have enough liquidity to distribute this dividend and repay debt.”

Zain also confirmed that it and Bharti Airtel are proceeding towards completion of the sale of Zain Africa assets to the Indian telecoms giant, with Bharti Airtel beginning to draw down funds for the transaction.

On completion, Zain plans to repay its US$4 billion revolving credit facility and to use the remaining proceeds to attend to other corporate matters. A sum of US$700 million of the total cash proceeds is due one year from completion.