Ooredoo, Qatar’s leading telecommunication company, successfully completed the issuance of its $500 million senior unsecured 144A/RegS notes, which were oversubscribed 3.6 times. Priced at an annual coupon rate of 4.625 per cent, the Notes mature in October 2034.
Rated A2 by Moody’s and A by S&P, the Notes were issued by Ooredoo’s wholly-owned subsidiary, Ooredoo International Finance Limited, under an existing $5 billion Global Medium Term Notes programme on the Irish Stock Exchange. They are unconditionally guaranteed by the telco.
The transaction achieved a spread of 88 basis points over 10-year US Treasuries, marking the tightest spread ever achieved in the company’s history. It was also among the lowest for an emerging market corporate issuer and the lowest for a telecommunications company on a 10-year bond since 2020.
Group CEO Aziz Aluthman Fakhroo, commented: “The strong interest in this bond issuance underscores investors’ confidence in Ooredoo’s strategy as well as its operational and financial performance.
“Achieving the narrowest spread over 10-year US Treasuries in the company’s history also reflects the market view that Ooredoo is seen as a reliable, secure and future-proofed investment option.
“The issuance comes at an important time for our company, as we continue our journey to becoming the MENA region’s leading digital infrastructure provider.”
Ooredoo’s diverse investor base
The issuance attracted a diverse group of investors, including asset managers, fund managers, insurance and pensions companies, banks and sovereign wealth funds from territories including the United States, the United Kingdom, Europe, Asia and the MENA region.
Net proceeds from the sale of the Notes will be used for Ooredoo’s general corporate purposes, including refinancing of its existing indebtedness.
Last month, the group announced a landmark $550 million financing deal to accelerate the growth of its data centre business and unlock new opportunities in AI and cloud computing. This follows the establishment of the MENA Digital Hub earlier this year.
Ooredoo serves consumers and businesses in nine countries, delivering leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks. The copmpany generated revenues of QAR 23 billion ($6.32 billion) as of 31 December 2023.
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