Qatar's Qtel raises $1.87bn from rights issue

Qatar Telecom has raised QR6.8bn ($1.87bn) from a fully subscribed rights issue, the firm said in a statement on Tuesday. The capital will be used for general corporate purposes and to refinance existing debt, according to a regulatory filing to the London Stock Exchange where Qtel has bonds listed. "Qtel continues to optimise its capital structure to ensure the financial efficiency of the company as it delivers on its strategy," Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Qtel chairman, said. Qatar National Bank was lead manager for the offering. In April, Qtel said it had no refinancing needs and would pay back maturing debt using its own cash, following reports it was seeking a $2bn loan to help refinance a $3bn obligation due in October. The telco had QR21.1bn cash and cash equivalents at the end of March, its first-quarter financial statement said. Qtel has approached banks regarding a $1bn commercial paper programme, which, if set up, would be a rare example of a Middle Eastern entity using the liquidity management instrument. The Gulf state's former monopoly beat analysts' forecasts for its first-quarter results, despite reporting a 12 percent drop in net profit on foreign exchange losses. Shares in Qtel ended up 0.8 percent on Monday, extending 2012 gains to 22 percent. From Arabian Business