Banglalink announces pricing of inaugural USD 300m bonds

Risingbd Desk, DHAKA, Apr 28: Banglalink Digital Communications Limited (“Banglalink”), the country’s 2nd largest mobile operator and a wholly owned subsidiary of Cairo based Global Telecom Holding (GTH) has priced a 5-year USD 300 million 8.625% notes (the “Notes”).

Vimpelcom Limited, the 6th largest mobile telecommunication group in the world is the parent company of GTH. As of today, Banglalink has a subscriber base of more than 29 million. The historic transaction marks the first ever international bond offering from Bangladesh, receiving at the same time, huge demand from investors worldwide.

Banglalink is rated B1 by Moody’s Investors Services, Inc. (“Moody’s”) and B+ by Standard & Poor’s (“S&P”), each with a stable outlook. The Notes will be due in May 2019 and are expected to be rated B1 by Moody’s and B+ by S&P. Banglalink intends to use the net proceeds from the offering to repay existing indebtedness and to finance capital expenditures.

The Notes will have a re-offer price of 99.008% with a yield to maturity of 8.875%. The transaction is expected to close on May 6, 2014.

Mr. Ziad Shatara, CEO of Banglalink, said, “This transaction is a major milestone for Banglalink and further diversifies our sources of funding into international capital markets. We are very pleased with the support of so many high quality global investors for this inaugural offering.”

risingbd/Lenin/Augustin Sujan