Etisalat signs €3.15bn loan to fund Maroc Telecom acquisition

Etisalat signs loan agreement with 17 international, regional and local banks.

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Etisalat, the UAE’s biggest telecoms operator, said today that it had signed a €3.15 billion (Dh15.99bn) multi-currency loan to finance the acquisition of Vivendi’s 53 per cent stake in Maroc Telecom.

The loan was signed with 17 international, regional and local banks, Etisalat said in a statement.

Etisalat said that financing consists of two facilities which can be utilised in euros and or US dollars. Tranche A is a one-year bridge loan of €2.1bn. While, tranche B is a three-year bullet term loan of €1.05 billion, which means the loan’s principal must be paid in a single payment at the end of the term.

Etisalat said in its earnings statement on Sunday that the Maroc Telecom acquisition is expected to close by the end of May. The deal is subject to regulatory approvals in Morocco.

An Abu Dhabi state-owned fund is financing a quarter of Etisalat’s €4.2bn purchase of Vivendi’s stake in Maroc Telecom, Reuters reported this week.

Etisalat’s first-quarter net income rose 11 per cent to Dh2bn, as subscribers across the group grew 3 per cent to 145 million.

selgazzar@thenational.ae