Abu Dhabi-based telecoms firm Emirates Telecommunications Corp (Etisalat) is planning its first ever sukuk issuance in a follow-up to its debut conventional bond earlier this year, bankers told IFR.
The firm, rated Aa3/AA-/A+, is in talks with banks for the potential Islamic bond issuance, proceeds of which are set to go towards infrastructural improvements of its telecommunications network.
The company will have the documents ready in the coming weeks, but the deal is more likely to be launched in early 2015, added the bankers.
The initial indications are that the company will not raise much more than US$500mn from the trade, said one Dubai-based debt capital markets banker. “It is going to be a small deal, probably around benchmark. Certainly nothing like the last trade,” he said.
The telecoms firm completed a $4.25bn-equivalent dual-currency four-tranche deal in June, a trade that was launched to support the acquisition of a majority stake in Maroc Telecom.
