tions (Batelco), which made a joint $950 million cash bid for a stake in Zain Saudi last week, is confident it will raise the necessary financing for the deal, its chief executive said Friday. Batelco teamed up with Prince Alwaleed Bin Talal's Kingdom Holding to bid for Kuwaiti telco Zain's 25 percent stake in Zain Saudi. The sale is a key condition of UAE telecoms firm Etisalat's $12 billion offer for a 46 percent stake in Kuwaiti Zain as both firms operate in the kingdom. “Batelco Group, based on proposals received from financial institutions, is confident that it has the capability to raise debt up to $1.2 billion,” Batelco CEO Peter Kaliaropoulos said Friday. “Events in the last few weeks may increase in the short term the cost for such financing but based on feedback from (Gulf) and international banks, there is healthy interest and a competitive spirit, from banking partners to deliver the required financing.” Middle East unrest, including in Bahrain where the government imposed a state of emergency last week, has raised risk premiums. “Any fundraising exercise by any Bahraini borrower will prove difficult now in any credit market. There is no price for Bahrain today – I would not even try to do a deal for Batelco or any Bahraini name today,” a head of loan syndicate said. If Batelco cannot finance the purchase, it could scupper Etisalat's $12 billion bid for Zain unless another buyer can be found, bankers said.
