Ooredoo has successfully completed the issuance of $500 million in senior unsecured 144A/RegS notes (the “Notes”). These notes were issued by Ooredoo International Finance Limited, a wholly-owned subsidiary, under the existing $5 billion Global Medium Term Notes program on the Irish Stock Exchange and are guaranteed unconditionally by Ooredoo. The Notes received ratings of A2 from Moody’s and A from S&P.
Priced at an annual coupon rate of 4.625%, the Notes will mature in October 2034. This issuance achieved a spread of 88 basis points over 10-year U.S. Treasuries, marking the narrowest spread in Ooredoo’s history and one of the lowest spreads for an emerging market corporate issuer, as well as the lowest for a global telecommunications company on a 10-year bond since 2020.
The issuance was oversubscribed by 3.6 times, attracting a wide range of investors, including asset managers, fund managers, insurance and pension companies, banks, and sovereign wealth funds from the U.S., U.K., Europe, Asia, and the MENA region. The net proceeds from the sale of the Notes will be utilized for Ooredoo’s general corporate purposes, including the refinancing of existing debt.
Aziz Aluthman Fakhroo, Group CEO of Ooredoo, stated, “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 U.S. Treasuries in the company’s history reflects the market’s perception of Ooredoo as a reliable, secure, and future-proofed investment. This issuance is timely as we strive to become the leading digital infrastructure provider in the MENA region.”
The issuance was arranged by a syndicate of joint global coordinators and bookrunners, including Citigroup Global Markets Limited, J.P. Morgan Securities plc, HSBC Bank plc, Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd., and QNB Capital LLC.
Last month, Ooredoo announced a landmark $550 million financing deal to accelerate its data center business growth and explore new opportunities in AI and cloud computing. This follows the establishment of the MENA Digital Hub, Ooredoo’s new carrier-neutral data center company, which aims to transform the region’s digital infrastructure.
About Ooredoo
Ooredoo is an international communications company operating across the Middle East, North Africa, and Southeast Asia. Serving consumers and businesses in nine countries, Ooredoo provides a leading data experience through a broad range of content and services via advanced, data-centric mobile and fixed networks.
As of December 31, 2023, Ooredoo generated revenues of QAR 23 billion, with its shares listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.
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