* Adds banks as passive bookrunners on bond- sources
* May do deal of 5, 10-yr dls, 7, 12-yr in euros- sources
* Bond expected next week, to part-replace loan for Maroc
(Adds detail, context)
By Archana Narayanan and David French
DUBAI, June 2 Etisalat, the Abu
Dhabi-based telecoms firm, has added four banks to the list of
bookrunners for its potential debut bond, which could include
dollar and euro-denominated paper of up to 12 years duration,
banking sources said on Monday.
The mainly state-owned company added Bank of
Tokyo-Mitsubishi UFJ, Morgan Stanley, National
Bank Of Abu Dhabi and Natixis as passive
bookrunners, three sources said, speaking on condition of
anonymity as the information is not public.
They join Deutsche Bank, Goldman Sachs,
HSBC and RBS, who are acting as the main
bookrunners for the deal and were confirmed by the company last
Proceeds from the bond sale would be used to repay
short-term debt under Etisalat's 3.15 billion euro ($4.3
billion) multi-currency loan used to fund its purchase of
Vivendi's 53 percent stake in Maroc Telecom,
finalised last month.
The banks acting as the main bookrunners take charge of
running the bond sale to investors, with passive banks in a more
advisory role. Sources had told Reuters last week that Etisalat
could add passive bookrunners to the deal.
Etisalat, rated Aa3/AA-/A+ by the main credit rating
agencies, began meeting fixed-income investors on Sunday in Abu
Dhabi and Dubai and will head to Asia and Europe in the next few
days. Final meetings are scheduled for London on June 9 and 10,
at which point the maiden offering from Etisalat is expected.
The group is planning to split its potential bond deal into
four separate sections across two different currencies, two
separate sources briefed by the company told Reuters.
It may issue bonds of five and ten years duration
denominated in U.S. dollars, as well as in euros with a lifespan
of seven and 12 years, they said, also speaking on condition of
anonymity as they were not authorised to speak to the media.
The company did not immediately respond to a request for
The company confirmed last week it could issue bonds in
dollars and/or euros. But its plans are subject to market
conditions and so the structure of the deal could change by the
time it finalises the transaction.
($1 = 0.7328 Euros)
(Additional reporting by Matt Smith; Editing by Andrew Torchia
and Jane Merriman)