Du Obtains $100 Million in Third Loan in a Month for ExpansionZahra Hankir
Du obtained a $100 million loan, the third financing facility the Dubai-based phone operator raised in a month as it seeks funding for expansion in the United Arab Emirates. The shares climbed.
The loan from Standard Chartered Plc will “optimize liquidity levels and allow us to fund both short and medium term capital expenditure,” Chief Executive Officer Osman Sultan said in a statement today. Shares of the company, also known as Emirates Integrated Telecommunications Co., gained 1.4 percent to 3.54 dirhams at the close in Dubai.
Du in December obtained a $500 million club facility from National Bank of Abu Dhabi PJSC after earlier that month securing a $100 million loan from DBS Bank. Du competes with Emirates Telecommunications Corp., also known as Etisalat, gaining about 47 percent of mobile-phone market share in the second-biggest Arab economy since it started operations five years ago.
The company, which has been focused on its home market since operations began in 2007, said in May it is open to expansion outside the U.A.E. Du will probably post a 44 percent increase in 2012 profit to 1.58 billion dirhams ($430 million), according to the average estimate of nine analysts on Bloomberg.
Du shares gained 21 percent last year, outpacing an advance of 20 percent for the benchmark DFM General Index. The stock fell 8.6 percent in December in the first monthly decline since May after the U.A.E. raised fees for the use of government facilities. The company has a market value of 16.2 billion dirhams, according to data compiled by Bloomberg.