Omantel plans to raise $2b from bond market

Muscat: Oman Telecommunications Company (Omantel), the largest telecommunication service provider in the Sultanate, plans to issue $2 billion dollar-denominated bonds in the international markets.
The board also decided to invite the company’s shareholders to an extra-ordinary general meeting to be held along with the annual general meeting to discuss and approve issuing a guarantee for the issuance of a denominated bond issue not exceeding $2 billion in the international capital markets by a subsidiary of Omantel. The proceeds of these bonds will be used to replace the abridged loan facilities obtained by Omantel to acquire a controlling stake in Zain Group.
Omantel has acquired a total of 21.9 per cent stake in Zain Group in two deals last year – one each in August and November - with a total cost of $2.19 billion. Omantel has financed this transaction with a combination of long-term and bridge loan facilities. The bridge loan facility will be repaid with the bond issue proceeds, Omantel earlier said.