SingTel breaks loan record for Optus

Singapore Telecommunications Ltd. (SingTel) said last week it was seeking a A$3 billion (US$1.9 billion) loan -- reportedly, a Singapore record -- to pay for its acquisition of Australian telecommunications carrier Cable & Wireless Optus Ltd.

SingTel won the bidding to purchase Australia's second-largest carrier with a A$17.2 billion bid for a 52.5 percent stake held by Cable & Wireless PLC in Optus.

Citibank/Salomon Smith Barney has been appointed coordinator and lead arranger for the loan, SingTel said in a statement.

The AFP news service cited Citibank sources as saying that this is the largest loan ever taken in Singapore by an organization.

The takeover gives SingTel one-third of the Australian mobile communications market and lifts its total mobile phone subscribers to 6.2 million.

More than 50 percent of its revenue will come from foreign investments, up from 24 percent.

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More about Cable & WirelessCitigroupOptusSalomon Smith BarneySingapore TelecommunicationsSingtel

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