Singapore, 14 November 2008 – Singapore Telecommunications Limited (Singtel) today announced that it entered into agreements for credit facilities of approximately S$1.075 billion to refinance existing facilities and for general working capital purposes.
Singtel, through its wholly-owned subsidiary, Singtel Group Treasury Pte. Ltd., signed an agreement for a 5-year facility of S$350 million with The Bank of Tokyo-Mitsubishi UFJ, Ltd, DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited.
The facility will mature in November 2013.
In Australia, Optus Finance Pty Ltd, a subsidiary of Singtel Optus Pty Limited, signed a 3.5-year A$725 million syndicated revolving credit facility with Australia & New Zealand Banking Group, The Bank of Tokyo-Mitsubishi UFJ, Ltd, Citibank N.A., Commonwealth Bank of Australia and Westpac Banking Corporation.
The facility will mature in April 2012.
Ms Jeann Low, Singtel’s Group Chief Financial Officer, said: “We are pleased with the support demonstrated by our bankers in Australia and Singapore and their confidence in the Singtel Group.”
Singtel and Optus have an A+ rating from Standard & Poor’s. Moody’s Investors Services rates Singtel an Aa2 and Optus an Aa3.
For the half year ended 30 September 2008, Singtel generated free cash flow after capital expenditure of approximately S$1.7 billion. Net debt as at 30 September 2008 was S$7.1 billion, which represents a net debt gearing ratio of 25.8 per cent.
The transaction has no material impact on the earnings per share or the net tangible assets of Singtel for the current financial year.
