Orascom Telecom sells Iraqna to Zain Iraq in a $1.2bn deal

Zain Iraq would pay for the deal in two tranches of $600m each, one in 2008 and one in 2009, NBK said.

NBK Deputy CEO, Shaikha Al Bahar said that NBK was the sole arranger and book runner on the transaction. We were able to put together a unique deal structure that fit our client's needs. In order to execute the deal, we brought together a group of 12 regional and international banks in a very tight credit market environment and raised $1.8bn, on behalf of Orascom, said Al Bahar. We take pride in this deal that involves two of the top five telecom companies in the region and spans over three counties, Kuwait, Egypt and Iraq.

The $1.2bn deal is a clear example of NBK's financing strength and ability to arrange and execute mega deals in the region, and in partnership with the largest corporates in the region.

Al Bahar added that NBK takes special pride in this transaction given the timing of it. Whilst the international markets were shut down due to the sub-prime crises in the USA, NBK was able to raise $1.8bn in order to support the transaction and service its client.

NBK formed a syndicate of 12 regional and international banks, and successfully raised $1.8bn, 150% more than the deal size, added Al Bahar.

The participating banks were: NBK, Calyon, Gulf Bank, Mashreq Bank, Ahli Bank, Arab International Bank, Arab Bank, Qatar National Bank, Al Khaliji Bank, Ahli United Bank, Arab African International Bank, and International Bank of Qatar.

We are pleased with our strong and historic relationship with both Zain and Orascom; two of the major telecommunication companies the Middle East, added Al Bahar.

We are also proud to support Zain's subsidiaries all over the globe, in Kuwait, Africa, Saudi Arabia, Bahrain, Jordan, Lebanon, and Iraq through our 155 regional and international branches.