* Qtel picks Barclays, QNB, Mizuho, Mitsubishi, HSBC, Morgan
* Roadshows start Dec. 9 in UAE, conclude Dec. 11
* Proposed bond open to U.S. investors
* Qtel borrowing costs lower than at last issue in 2010
(Adds detail, background)
DUBAI, Dec 6 Qatar Telecom (Qtel) has
mandated six banks for a possible benchmark-sized
dollar-denominated bond, lead arrangers said on Thursday, in
what would be the majority state-owned operator's first bond
sale since 2010.
Qtel picked Barclays Plc, HSBC Holdings,
Mitsubishi UFJ Securities, Mizuho Securities, Morgan
Stanley Inc and QNB Capital as lead arrangers
and bookrunners for the deal.
Qtel has been raising stakes in its subsidiaries, taking
advantage of the gas-rich Gulf state's healthy financial
position at a time when other large telecom firms are shying
away from deals. It increased its stake in Iraqi telco Asiacell
and Kuwaiti affiliate Wataniya this year.
Benchmark-sized is typically at least $500 million, and the
sale will be open to qualified institutional investors in the
United States as it will be 144a-compliant. The proposed bond
will be issued by Qtel International Finance, a fully-owned
subsidiary of Qtel, which will guarantee the new issue.
Roadshows kick off on December 9 in the United Arab Emirates
before meetings in London, Hong Kong, New York, Singapore and
Boston, concluding on December 11.
Qtel, rated A by Standard & Poor's, last tapped global debt
markets in the fourth quarter of 2010 to raise $2.75 billion
from a heavily-oversubscribed sale. Yields on its existing bonds
have fallen significantly, reducing Qtel's borrowing costs.
Its $1 billion 4.75 percent bond maturing 2021
was bid at 112 cents on the dollar on Thursday,
to yield 3.08 percent, according to Thomson Reuters data.
The $1 billion 3.375 percent bond, maturing 2016
, was yielding just 2.2 percent. The remaining
$750 million portion, issued at 5 percent and due 2025
was yielding 3.9 percent.
Qtel's shares have also rallied, up 8.5 percent
year-to-date. Qtel reported a 74-percent rise in third quarter
profit in October after completing a sale and leaseback of
towers in Indonesia and on the back of higher domestic revenues.
Qtel operates in 16 countries across the Middle East, Africa
(Reporting by Rachna Uppal and Mala Pancholia; Editing by