Qtel to secure $1 billion loan facility

Qtel to secure $1 billion loan facility

Qatar Telecom is set to secure a $1 billion loan facility to aid funding for its general business operations.

According to Reuters, the agreement has a life span of four years, and will be completed once all lenders have agreed to the terms.

State-owned Qtel, Qatar’s largest operator, has been expanding its portfolio through a range of acquisitions, and raising stakes in its subsidiaries.

It is thought Qatar’s favourable financial position has given the company leverage against other operators worldwide, which have struggled to make investments in a difficult economy.

Reuters suggests over a dozen banks have backed the loan, despite its low pricing.

Qtel increased its stake in Iraqi telco Asiacell and Kuwaiti company Wataniya in 2012, and acquired an additional 15% stake in Tunisia’s Tunisiana.

It has also held talks with Vivendi over its 53% stake in Maroc Telecom, but could face competition from rivalling Middle Eastern operator Etisalat.

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