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FINANCIAL NEWS
Dubai’s Du receives $225m fund
07 Oct 2010
(MENAFN) A statement issued by Du, a UAE telecom operator, said that The Export-Import Bank of China has given the telecom company a $225 million in order to finance Du’s expansion of 3G network, Gulf Daily News reported.
The telecom firm, partly owned by the ruler of Dubai’s investment company Dubai Holding and Abu Dhabi investment vehicle Mubadala Development Company, more than doubled its second-quarter net profit on the back of growth in both mobile and fixed-line subscribers.
Part of the fund will be used to repay an existing $85 million short-term fund and the rest will go to buy equipment for expansion of the 3G network.
Last month, Du inked a $207 million export fund with KfW IPEX-Bank GmbH, part of German lender KfW Bankengruppe, to fund the expansion and upgrade of its network.
The agreement will help du turn its three-year short-term borrowing into a seven-year facility, based on a two-year drawdown and five-year repayment plan.
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