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Etisalat successfully prices first bond issuance

Etisalat, rated Aa3 stable (Moody’s), AA- Stable (S&P) and A+ stable (Fitch), successfully issued the inaugural bond under its recently established USD 7 billion Global Medium Term Note (GMTN) Programme that was listed on the Irish Stock Exchange on 22 May 2014.

The issued bonds are denominated in US Dollars and Euros and consist of four tranches. A five year tranche of $500 million with a coupon rate of 2.375-percent per annum; a seven year tranche of Euro 1,200 million with a coupon rate of 1.750-percent per annum; a ten year tranche of $500 million with a coupon rate of 3.500-percent per annum; and a 12 year tranche of Euro 1,200 million with a coupon rate of 2.750-percent per annum.

Net proceeds from the issuance of the bond will be used for repayment of the outstanding facilities amounting to EUR 3.15 billion that were used to fund the acquisition of the Vivendi’s 53-percent stake in Maroc Telecom.