Record $2.35 billion Islamic finance deal struck to fund Ettihad Etisalat is co-managed by nine banks
Dubai, October 2, 2004: Striking a buoyant note on the eve of GITEX, the region's largest IT and Telecom exhibition, Etisalat Chairman Dr. Mohammed Khalfan bin Kharbash promised details of the Corporation's plans for further regional and international expansion would be released in due course.
With Etisalat due to unveil the biggest stand in the history of the show when it opens in Dubai on Sunday, Dr Kharbash promised that there was plenty more to come. He said: "The Corporation's historic success in consortium with six Saudi partners in outbidding international and regional telecom players to win the Saudi 2nd GSM licence is an indication of our ambitious plans to expand into regional and international markets."
In addition to its 35 per cent stake in Ettihad Etisalat, its newest venture in Saudi Arabia, the Corporations has substantial investments in Thuraya, the global satellite-based telecom service provider, and minor investment in telecom companies in Qatar, Sudan and Zanzibar. Currently, it is looking at other key prospects in international markets, which have high subscriber and revenue growth potential.
Dr Kharbash promised that details of these initiatives would be announced in due course. He said: "Today Etisalat is one of the most successful companies in the region with a market capitalisation of more than Dhs56.4 billion. It is widely acknowledged to be one of the world's leading telecom companies.
"Etisalat is a much sought after partner in the global telecom market due to our first class human capital, technological prowess and substantial heritage of providing our customers with an enhanced communications experience.
"Our success in the Saudi market validates Etisalat's vision to be the driving force for change in the sector and continue to be our customers' first choice for all their media, information and communications needs."
Clarifying the roles played by international and regional banks in the world's largest Islamic financing transaction of $2.35 billion to partly fund Ettihad Etisalat's financial requirement, Mr. Mohammed Hassan Omran, Acting President and CEO of Etisalat, said: "The Murabaha transaction - a Sharia compliant bank financing instrument in two tranches - involves nine Mandated Lead Arrangers (MLA) which comprise of Saudi, regional and International financial institutions.
"These are Samba Financial Group, National Commercial Bank , Al-Rajhi Banking and Investment Corporation, Bank AlJazira, Citigroup, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Kuwait Financial House and Emirates Bank. Samba Financial Group and The National Commercial Bank acted as local book runners in Saudi Arabia while Citigroup and Emirates Bank were international book runners".
The top four underwriting commitments were from Samba Financial Group, The National Commercial Bank, Al-Rajhi Banking and Investment Corporation and Citigroup. BNP Paribas acted as the financial advisor and Trowers & Hamlins as legal advisor for Ettihad Etisalat, whilst Clifford Chance with Jadaan Law firm, advised the lenders.
The $2.35 billion Murabaha transaction will partly fund the $3.45 billion licence fees. The balance will be met through an initial public offering (IPO) at a date to be announced shortly, in addition to the consortium members' equity contribution.
Etisalat has taken the largest ever stand at the current GITEX to showcase its cutting-edge technologies and services. A substantial part of the stand will showcase plans of Ettihad Etisalat of Saudi Arabia.
-Ends-
For further information, please contact:
Ahmed Bin Ali
Etisalat - Public Relations Department
Main Office - Abu Dhabi
Tel: 02 -6182173
Fax: 02-6334448
Email: prd@etisalat.ae
www.etisalat.ae
Dubai, UAE
Tel: +971-4-3344550,
Fax: +971-4-3344556
E-Mail: info@asdaa.com
www.asdaa.com
© Press Release 2004
