Qatar Telecom (Qtel) has closed the general syndication of its new $2 billion dual tranche revolving credit facility, with the total subscribed amount of $3.86 billion substantially exceeding the original target of $1.5 billion.

In the general syndication phase 17 additional banks joined with commitments of $1.11 billion.

'We are delighted about the huge success of our loan facility that has attracted such a strong response from investors across Qatar, The Middle East and internationally,” said Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel.

“An oversubscription of more than 150 per cent of the original target demonstrates the appeal of Qtel to the financial community,” he added.

Dr Nasser Marafih, CEO, Qtel, said: 'We very much appreciate the continued strong support of our core relationship banks that have remained very committed in their support in these volatile market conditions.”

“Our strategy to access the global banking community while maintaining a close relationship with our local and regional banks will be the basis for future expansion in line with our goal to become a top 20 global telecommunication company by 2020.'

Ali Sharif Al Emadi, Group CEO of Qatar National Bank (QNB), said: 'Our role as initial mandated lead arranger, bookrunner and general financial adviser to Qtel is a clear reflection of the confidence and trust placed on QNB's credit standing and local and regional market leadership in syndications and advisory services.”

“Qtel's overwhelming success with this international loan transaction is of even more significant given the current economic conditions, underscoring the company's leadership and solid financial position,” Al Emadi added.

The facility was arranged by the following banks: BNP Paribas, DBS Bank, Qatar National Bank, Societe Generale Corporate & Investment Banking and The Royal Bank of Scotland (together the 'bookrunners'). Qatar National Bank acted as the general financial adviser to Qtel.

The facility will be used for general corporate purposes including the refinancing of an existing $2 billion forward start facility.

This is the first syndicated corporate loan deal with a five-year tenor to be completed since September 2008 in the GCC. – Reuters