Mobile Telecommunication Company K.S.C. (MTC), the leading mobile operator in Kuwait, has mandated a group of banks to provide a US$ 750 million syndicated Murabaha Financing Facility (the “Facility”) in the name of its fully owned subsidiary, Mobile Telecommunications Company International B.V. (MTCI). The Facility will be used for general corporate purposes including refinancing of the existing USD 750m signed on 18 December 2005.
The Facility is fully underwritten by the Mandated Lead Arrangers, ABC Islamic Bank (E.C.) (ABC), Arab Bank plc, Calyon Corporate and Investment Bank (CALYON), Gulf International Bank B.S.C.(GIB), Kuwait Finance House (KFH) and National Bank of Abu Dhabi PJSC. The Bookrunners, ABC, CALYON, GIB and KFH expect to launch general syndication shortly.
MTC is the pioneer of mobile services in the Middle East and now a major player in Africa. The company was established during 1983 in Kuwait as one of the region’s first mobile operators, and since the initiation of the “3x3x3” profitable expansion strategy in 2003, has expanded rapidly becoming the 5th largest mobile company in the world in geographic presence with a footprint in 20 countries.
As a leading mobile and data services operator in six Middle Eastern and 14 sub-Saharan African countries with over 12,000 employees, MTC provides a comprehensive range of mobile voice and data services to over 24 million individual and business customers.
The group recorded revenues of KD 579 million (USD 1.98 billion) and net profit of KD 186 million (USD 636 million) during the year ended December 31, 2005.
For the six months ended June 30, 2006, the group recorded consolidated revenues of KD 501.32 million (USD 1.72 billion), an increase of 121% over the same period in 2005. During the six months, the consolidated EBITDA increased by 81% to reach KD 254.06 million (USD 871.55 million), a margin of 51%. Consolidated net income reached KD 139.31 million (USD 477.92 million), an increase of 55% compared to the same period last year.
A public company listed on the Kuwait Stock Exchange, MTC had a market capitalization exceeding USD $14.6 billion as at Oct 11, 2006. The Kuwait Investment Authority is the largest shareholder with 24.6% of the company’s shares.
MTC has been very active in bidding for and acquiring mobile businesses in the Middle East and Africa region over the past three years. Recently of note are the US$3.4 billion acquisition of Celtel International in April 2005, (an African operation in 13 countries), the US$1.332 billion acquisition of the remaining 61% of Mobitel Sudan (ownership is now 100%) and the US$1.005 billion acquisition of 65% of Vmobile Nigeria in May 2006.
The Facility falls in line with MTC’s overall expansion strategy, which has been implemented successfully thus far.
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