16 Sep 2010
UAE telecoms company Emirates Integrated Telecommunications, which operates under the brand Du, has announced it has secured USD207 million in export credit financing to help fund the expansion of its wireless network. Du said it entered into the financing agreement with KfW IPEX-Bank, part of the German KfW Bankengruppe. The credit facility is backed by German export credit agency ECA Euler Hermes and was arranged by Finnish equipment vendor Nokia Siemens Networks (NSN). Under the agreement, Du will use the export credit facility for the purchase of NSN solutions and services, in order to expand and upgrade its 2G and 3G mobile networks.
Commenting on the deal, Osman Sultan, CEO of du, said: ‘There continues to exist a high demand throughout the UAE for improved coverage and capacity. This financing deal with NSN and KfW IPEX-Bank will enable us to carry on meeting this demand head on. The new equipment will facilitate the continued roll out of our 2G and 3G network, greatly benefitting Du’s customer base, while simultaneously expanding our coverage and capacity within the UAE.’ According to TeleGeography’s GlobalComms Database, Du is 80% owned by its founder shareholders; the Ministry of Finance owns 40%, with the Abu Dhabi Mubadala Development Company and government investment body Tecom Investment owning 20% each. The remaining 20% was purchased by private Emirati investors following an IPO in April 2006.