TheU.A.E.'s Emirates Telecommunications Corp., or Etisalat, said Wednesdayit is close to finalizing a bond program aimed at financing foreignacquisitions and expanding into new markets.
The bond program -under which the company will be able to sell conventional bonds andIslamic bonds, or sukuk - is in line with "foreign expansion andacquisition activities Etisalat is carrying out in regional and globalmarkets," the company said in an emailed statement.
The bondprogram is being prepared by global consulting firms and institutions,the telco said in the statement. Etisalat didn't give a size ortimeline for the program.
Etisalatsaid it expects its subscriber base to expand in 2010, from a current85 million subscribers in Etisalat companies or affiliates across 17markets in Asia and Africa.
"It is expected the number ofsubscribers will rise in 2010," the firm said without specifying towhat level it expected subscriber numbers to rise.
Last month,Etisalat said it submitted a bid to fully acquire the Sri Lankanoperations of Luxemburg-based Millicom International Cellular S.A. Theoperator already has investments in Saudi Arabia and Pakistan.
Etisalat'soverseas operations will contribute to a slightly higher third-quarterprofit this year, according to Dubai-based investment bank Al MalCapital.
Al Mal sees Etisalat posting a 0.5% year-on-year risein third-quarter net profit to 2.2 billion U.A.E dirhams ($599.4million), from AED2.13 billion in the same period last year
"Webelieve the worst is behind Etisalat," said Al Mal in a report thisweek."Whilst competition from [the U.A.E.'s second operator] Du willremain, an increasing proportion of revenue and profits should comefrom overseas operations."
Abu Dhabi-listed Etisalat shares closed down 0.4% at 12.45 U.A.E. dirhams ($3.39) Wednesday in a slightly positive market.