8 Jun 2011
UAE telecoms operator Du has secured a three-year loan facility worth USD220 million to help fund expansion in its domestic market, The National reports. ‘This facility is the latest part of our financing strategy, and further strengthens the company’s financial and operating position,’ commented Osman Sultan, chief executive of Du. Part of the loan facility will be used to repay an AED3 billion (USD817 million) loan due at the end of June, while the rest will be invested in the expansion and improvement of its services in the UAE. According to TeleGeography’s GlobalComms Database, the new facility is the latest secured by Du in the last year or so to help the operator compete with incumbent and sole rival Etisalat; Du signed a EUR200 million (USD270 million) financing deal with Finnish telecoms equipment vendor Nokia Siemens Networks (NSN) in April 2010, and was awarded a further USD207 million in export credit financing from KfW IPEX-Bank, part of the German KfW Bankengruppe, the following September to help fund the expansion of its wireless network.