Qatar’s Telecommunications Company Qtel has just announced that it is to refinance a $2 billion loan that it initially drew down last September as a forward-start loan which was a popular type of loan being used before the credit crunch crises. Qtel are stating that the restructuring of this loan is a positive step forward that will allow them to reduce their loan repayments significantly as the interest payment now being paid will be somewhat lower.
14 banks are currently involved in the financing of the new deal and the funds raised will be used to reduce the initial banks commitment to these funds. It has also been stated that this type of refinancing of a forward-start loan has now become very popular. These loans were widespread last year and were used by companies whose loans were soon going to mature and this loan would allow them to extend the loan repayment period in exchange for a substantial increase in the overall commitment to future higher repayments of the loan.
Qtel is the first borrower to be offered a five-year maturity loan since the onset of the global financial crises. Some of the institutions involved in the loan are DBS, the National Bank in Qatar, the Societe Generale and the Bank Royal of Scotland.Andrew Reid, Staff Writer, Gulf Jobs Market News