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Monday, November 30 - 2009

Dubai Holding's $2.25bn syndicated loan for Tunisie Telecom stake signed

  • United Arab Emirates: Saturday, September 23 - 2006 at 15:09
  • PRESS RELEASE

Dubai Holding has announced the successful syndication of a US $2.25 billion loan for financing its 35 % stake in Tunisie Telecom.

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  • Investment biggest yet in telecoms sector
    Investment biggest yet in telecoms sector
The loan has enabled the consortium, formed by Dubai Holding's subsidiaries Dubai Investment Group and TECOM Investments (TECOM-DIG), to complete their landmark investment in Tunisie Telecom.

The 18-month syndicated loan closed more than 100% oversubscribed in July 2006. A total of 45 financial institutions have participated in the facility, with around 50% of lenders coming from the Middle East and the remainder from Europe and Asia. The lead arrangers were Emirates Bank and Standard Chartered.

At the loan signing ceremony, held in Dubai, Fadel Al Ali, Chief Financial and Operating Officer of Dubai Holding said:
"Our stake in Tunisie Telecom is our biggest investment in the region's telecoms sector so far. The successful syndication of the $2.25bn loan reflects the confidence of financial institutions in our investment strategy and the growth potential of the MENA telecom market. The support of Emirates Bank and Standard Chartered was instrumental in achieving the investment's objectives and we look forward to expanding our telecom market share as new business opportunities arise and are evaluated."


The loan syndication process started after TECOM-DIG successfully bid for 35 % of Tunisie Telecom in March this year. Its offer of US $2.25 billion outbid 12 other leaders in the telecom industry and resulted in the signing of a binding share agreement in April.

The Tunisie Telecom stake is part of Dubai Holding's larger strategy to make key acquisitions in the telecom sector in the MENA region. Earlier this year, the TECOM-DIG consortium acquired a 60% stake in Maltacom, the leading telecom carrier in Malta. This investment complements TECOM's plans to build a knowledge-industry park in Ricasoli in Malta.

Abdulwahed Al Fahim, General Manager, Emirates Bank said: "The response to the syndicated loan for the Tunisie Telecom stake reaffirms the leading role Emirates Bank plays in supporting the growth of key sectors, not just in the UAE but throughout the region. We have a strong relationship with Dubai Holding, which we are keen to develop as the organization widens its investment portfolio across the region."

Mohamed Metwally, Managing Director, Corporate Finance and Advisory, Middle East and Pakistan for Standard Chartered Bank said: "We are very happy to have supported Dubai Holding in completing this cross-border acquisition. The regional telecom market is at a dynamic stage of growth that makes it very attractive for investors. We see Dubai Holding's strategic acquisition of Tunisie Telecom stimulating more cross-border investments."

The TECOM-DIG investment strengthens Tunisie Telecom's ability to capitalize on the high growth in the telecom sector services among Tunisia's 10.2 million population. At the end of 2005, the company already had a substantial customer base of 3.4 million mobile subscribers and 1.2 million fixed line subscribers.
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Notes and media contacts

About Dubai Holding:
Dubai Holding was launched to consolidate the various large scale infrastructure and investment projects in Dubai that were created over the past five years as well as research, identify and execute future major projects that will benefit the UAE and the region.
The company has been created with the goal of providing a better future for all - across the range of life-improving industries it is involved in. Each of the Dubai Holding operating companies focuses on key areas which will dynamically support the development of Dubai as a world leading hub for commerce, leisure and finance, in turn driving these companies to become leaders in their respective fields in the Middle East and beyond.

Dubai Holding currently has 20 companies operating in 11 sectors ranging from health, technology, finance, real estate, education, tourism, energy, communication, industry, biotechnology and hospitality.

Standard Chartered - leading the way in Asia, Africa and the Middle East
Standard Chartered PLC is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is consistently ranked in the top 25 among FTSE-100 companies by market capitalisation.

Standard Chartered has a history of over 150 years in banking and is in many of the world's fastest-growing markets with an extensive global network of over 1,200 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.

As one of the world's most international banks, Standard Chartered employs almost 50,000 people, representing over 90 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

Standard Chartered uniquely derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.

Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance.

Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.

For more information on Standard Chartered, please log on to www.standardchartered.com

For further information, please contact:
Reem Sadek
Account Manager
JIWIN
The Public Relations Arm of Dubai Press Club
T:+9714 361 3 596

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