du inks $100M financing deal; targets future investment

02 JAN 2013

UAE-based operator du has signed a $100 million financing deal with Standard Chartered, which it says will allow it to “optimise liquidity levels” and fund “short and medium term capital expenditure.”

“We are pleased to have agreed the loan on good terms, benefitting from the currently favourable market conditions,” said du CEO Osman Sultan, though specific terms of the three-year deal were not disclosed.

The facility is the latest in a line of financing deals struck by the UAE’s number two operator. It signed a $500 million club debt facility with the National Bank of Abu Dhabi last month and also recently inked a $100 million financing deal with the Dubai branch of Singapore-based DBS Bank, to “fund the acquisition of equipment from Huawei to enhance network performance and operations in HSPA+, LTE and Advanced LTE.”

“The financing deal with Standard Chartered, combined with the debt facilities recently agreed with DBS and National Bank of Abu Dhabi, will give du the financial flexibility to fund the future growth of the business,” the operator said in a statement.

According to Wireless Intelligence, du had an estimated 6.1 million mobile connections in Q4 2012, behind market leader Etisalat on 7 million.