Arab Banking Corporation and Standard Chartered launch debut USD300 million Term Loan Facility for Batelco

The loan will be used for general corporate purposes and to support Batelco's growing business in the Middle East and North Africa (MENA) region.

The senior phase of syndication has closed successfully with positive response from the international and regional bank market. Arab Banking Corporation (B.S.C.) and Standard Chartered have been joined in the Facility by The Bank of Tokyo-Mitsubishi UFJ, Ltd., JP Morgan, National Bank of Abu Dhabi, National Bank of Bahrain B.S.C. and The Royal Bank of Scotland plc as Mandated Lead Arrangers.

Batelco is the leading telecom operator in Bahrain holding approximately 70% of the mobile customer base and being the major fixed line service provider. Established in 1981, the Government of Bahrain is the major shareholder in the company with an approximate direct and indirect 75% shareholding.

In addition to its operations in Bahrain, the company's activities are based in the MENA region through joint ventures and subsidiaries in Jordan, Egypt and Kuwait for the provision of internet access and data communication services. Recently, Batelco acquired ownership of Umniah, a GSM mobile operator in Jordan, offering nationwide coverage with more than 460 base stations across the kingdom and more than 500,000 mobile subscribers.

Batelco is listed on the Bahrain Stock Exchange with a total market capitalisation of US$3 billion as of December 31, 2006. As of 31 December 2006, the tangible net worth of Batelco totalled US$569 million with an asset base of US$1.3 billion. During the year ended December 2006, gross revenue grew by 11% to US$623 million whereas net income at US$237 million was 4.4% higher year-on-year.