Qatar Telecommunications Company (Qtel) has announced that it is introducing syndication of its $1.5 billion (Dh5.5bn) loan in order to enhance the facility amount. The sources said that in March this fiscal, Qtel had inked the forward start pact on a revolving credit facility maturing in November, extending the credit by two years.

Under a forward start pact lenders typically agree to extend existing loans at final maturity in return for a hefty increase in pricing on the existing credit.

The sources said that the launch follows the borrower's successful $1.5bn debut bond sale in June, which was more than eight times oversubscribed.

Banking sources close to the deal said in March each of the banks committed $200m for a fee of 200 basis points (bps), adding the loan carries a margin of 250 bps over Libor.