United Arab Emirates telecommunications firm du has borrowed $1.17 billion in three separate deals to refinance existing debt and fund equipment purchases, the company said on Tuesday.
The deals include a $720 million package reported by Reuters last month and agreements with Standard Chartered Bank and DBS Singapore to refinance and top up existing loans.
“The move lowers the company’s funding costs, saving approximately $9 million over the term of the loan due to the favourable margins agreed with the banks involved,” du said in a statement.
Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Saudi Arabia’s Samba Financial Group have provided du with a $720 million five-year facility.
Standard Chartered Bank has provided a $300 million facility, which includes the refinancing of the existing $100 million facility plus an additional $200 million of new facilities.
DBS Singapore has provided a $150 million facility, which includes refinancing the existing $100 million facility plus an additional $50 million of new facilities.
All loans carry an all-in cost of 140 basis points (bps) over the London interbank offered rate (Libor).