Re-dial

Dialog on Tuesday tapped HSBC for a Rs. 2.46 bn five year loan to pay back its Malaysian parent. Dialog on Tuesday tapped HSBC for a Rs. 2.46 bn five year loan to pay back its Malaysian parent. The loan carries a SLIBOR +1.4 percent interest payable over the five year period in equal semi annual installments.

The monies repatriated to Telekom Malaysia on Tuesday is reportedly the balance from a subscription in advance totaling Rs. 3.41 billion (approx. US$ 34 mn).

The monies were remitted from Telekom Malaysia to its Sri Lankan mobile subsidiary over five years.

The five year balance sheet in Dialog Telekom’s share issue prospectus carries a Rs. 1.81 bn subscription in advance for 2000 and 2001, with the total moving up to Rs. 3.4 billion in 2003.

Dialog officials explained that the balance was created after issuing some 95.42 million Rs. 10 ordinary shares to Telekom Malaysia

The prospectus also said that a board decision in May, decided to refund the balance to the parent firm through a commercial bank loan.

-LBO Newsdesk: