x Abu Dhabi, UAEFriday 21 July 2017

du obtains $100m loan from Standard Chartered

The UAE telecoms company obtained a $100 million loan in what was the third financing facility raised in a month as it seeks funding for expansion in the UAE.

The phone company du has agreed a U$100 million (Dh367.3m) loan to help to expand its network across the Emirates. It is the third such financing facility raised by the company in the past month.

The new fund would give the firm flexibility to fund future growth of its business, du said. It did not provide terms such as pricing for the deal or when it is due to mature. The loan from Standard Chartered will "optimise liquidity levels and allow us to fund both short and medium term capital expenditure," the chief executive Osman Sultan said.

Shares of the company gained 1.4 per cent to Dh3.54 in Dubai.

Last month, it emerged Etisalat and du would face increases in the fees they pay the Government. Du must pay a royalty fee of 5 per cent on revenues and 17.5 per cent on last year's profits - a rise on 2011, when du paid 5 per cent of revenues and 15 per cent of its profit.

Du in December obtained a $500m club facility from National Bank of Abu Dhabi after earlier that month securing a $100m loan from DBS Bank.

 

* with agencies