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FINANCIAL NEWS
Du signs USD220m finance agreement
08 Jun 2011
(MENAFN) Emirates Integrated Telecommunications’ (du) CEO, Osman Sultan, said that in order for the company to be able to pay back a USD816 million debt before the end of this month, the Dubai based telecom operator signed an agreement of USD220 million loan facility for financing new club which would span over three years, reported Emirates 24/7.
Sultan added that part of the loan would be used to repay the debt, whereas the rest would be used to finance the company’s continuing investments.
He also said that the agreement would carry the margin of 1.45 percent annually over the London Interbank Offered Rate (LIBOR), adding that this step would be the latest part of du’s financing plan, moreover, it would make the company’s financial and operating position stronger.
It is worth noting that du’s financial arrangements established over 2010, the strategic vendor financing agreements; and this club loan facility, gave the company important capital that will be used to ease its evolution as du moves to the next phase of development.
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