Qatar Telecom $1.87 billion rights issue covered - statement

Qatar Telecom $1.87 billion rights issue covered – statement

Qatar Telecom has raised 6.8 billion riyals ($1.87 billion) from a fully subscribed rights issue, the firm said in a statement on Tuesday.

May 29, 2012 12:06 by Reuters

Qatar Telecom has raised 6.8 billion riyals ($1.87 billion) from a fully subscribed rights issue, the firm said in a statement on Tuesday.

The capital will be used for general corporate purposes and to refinance existing debt, according to a regulatory filing to the London Stock Exchange where Qtel has bonds listed.

“Qtel continues to optimise its capital structure to ensure the financial efficiency of the company as it delivers on its strategy,” Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Qtel chairman, said.

Qatar National Bank was lead manager for the offering.

In April, Qtel said it had no refinancing needs and would pay back maturing debt using its own cash, following reports it was seeking a $2 billion loan to help refinance a $3 billion obligation due in October.

The Telco had 21.1 billion riyals cash and cash equivalents at the end of March, its first-quarter financial statement said.

Qtel has approached banks regarding a $1 billion commercial paper programme, which, if set up, would be a rare example of a Middle Eastern entity using the liquidity management instrument.

The Gulf state’s former monopoly beat analysts’ forecasts for its first-quarter results, despite reporting a 12 percent drop in net profit on foreign exchange losses.

Shares in Qtel ended up 0.8 percent on Monday, extending 2012 gains to 22 percent.

($1 = 3.6407 Qatar riyals)

(Reporting by David French; Editing by Amran Abocar