du shares gain as telecom operator refinances debt
After an alleged ultimatum imposed by Russia on the Ukraine was revealed to be a media hoax, the markets recovered ground, while oil prices retreated. Russia’s president Vladimir Putin said, at the moment, military intervention is not necessary. The Dubai Financial General Index (DFMGI) advanced 0.37 per cent to 4,120.95 points on Tuesday, March 4. Emaar was the most liquid share and closed flat at AED8.85. The second telecom operator in the UAE, du, gained 0.70 per cent, reaching AED5.90. Earlier in the day, du said in a filing to the Dubai bourse that it sealed three separate financing deals worth $1.7 billion for refinancing purposes. The move lowers the company’s funding costs, saving approximately $9 million over the term of the loan, due to the favourable margins agreed with the banks involved. Osman Sultan, CEO at du, says: “We have taken the opportunity of the historical low interest rate environment to refinance some of our existing debt and have been able to negotiate very favourable terms strengthening our balance sheet further. Approximately 506 million shares were traded, valued at AED1.032m.