Manama, Bahrain: Batelco Group (Ticker: BATELCO), the international telecommunications company with operations across 16 geographies, today announced the successful launch and pricing of a US$650 million 7-year Reg S bond offering. The bonds are rated BBB - by both Standard & Poor's and Fitch.
The transaction, led by BNP Paribas and Citigroup, is the inaugural bond issue for the Group with the proceeds forming part of the funding requirements for Batelco's recently announced acquisition of the Monaco & Islands business units of Cable & Wireless Communications (CWC).
The issue was priced at a spread of 325 basis points over 7-year US Treasuries, for a yield of 4.342% and coupon of 4.250% per annum, following a week long roadshow covering the Middle East, Asia and Europe. The pricing, at the tight end of revised price guidance, reflects the strong interest and participation of a well diversified group of global investors.
The transaction attracted a [US$4.8] billion orderbook across 255 accounts with allocations of 38% to Middle East investors, 12% to Asia, 22% to Europe, 27% to UK and the remaining 1% to other investors. By investor type, the initial split was 48% to asset managers funds, 34% to banks, 8% to private banks, 3% to insurance companies and pension funds, 3% to hedge funds and 4% to other investors. The bonds, which will settle on May 2, 2013, will be listed on the Irish Stock Exchange.
Commenting on the announcement, Batelco Group CEO, Shaikh Mohamed bin Isa Al Khalifa said, "We are extremely pleased with the success of this transaction, Batelco Group's first foray into the international bond market. The strong demand, attractive pricing and the extremely quick take up of the issue underscores the confidence of the global markets in our strategy, business model and prospects as we grow from a regional operator of reference into a global telecommunications player. In addition, the transaction also highlights our strong credit quality, strengthens our funding mix and provides us with greater financial flexibility."
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About Batelco
Batelco Group, is headquartered in the Kingdom of Bahrain and listed on the Bahrain Bourse. Batelco has played a pivotal role in the country's development as a major communications hub and today is the leading integrated communications' provider, continuing to lead and shape the local consumer market and the enterprise ICT market. Batelco has been growing overseas via investing in other market-leading fixed and wireless operators.
Batelco Group has evolved from being a regional Middle Eastern operation to become a major communications company with direct and indirect investments across 16 geographies, namely Bahrain, Jordan, Kuwait, Saudi Arabia, Yemen, Egypt, Guernsey, Jersey, Isle of Man, Maldives, Diego Garcia, St. Helena, Ascension Islands, Falklands, Monaco and Afghanistan.
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The securities to which this announcement relates have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state of the United States or other jurisdiction and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
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This press release has been issued by Batelco Corporate Affairs department.
For further information, please contact Batelco Public Relations Office
Public.Relations@btc.com.bh / Fax +973 17611898
© Press Release 2013
