Etisalat Group announced the successful completion of a bond issuance process worth one billion euros to refinance the slice of bonds it issued in 2014 to finance the acquisition of a controlling stake in Maroc Telecom.
The group issued the bonds in two tranches: the first tranche for a period of 7 years at a value of 500 million euros, at an annual interest rate of 0.4%, and the second tranche for a period of 12 years at a value of 500 million euros, and at an annual interest rate of 1%.
The refinancing decision aims to diversify the company’s financial sources, extend the schedule of repayment of existing debts, and benefit from improving the cost of financing, in a manner that creates added value for shareholders. The bond issuance process witnessed a great success, represented by the strong demand by local and international investors to subscribe, which exceeded the value of the bonds issued by the “Etisalat Group” by 6 times.
This increased demand for bonds reflects investor confidence in the performance of Etisalat Group, in the strength of its financial business portfolio, and in its credit rating, which scored Aa3 / Stable (Moody’s) outlook, AA- / Stable (S&P Global), which is considered one of the highest. Rankings in the telecom sector. This application also highlights the growing confidence of international investors in the UAE economy.
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