Citibank, Deutsche Bank advised Etisalat to invest in Swan

UAE-based Etisalat, which picked up equity in controversial Swan Telecom (now Etisalat DB), has said that two leading global banks, Citibank and Deutsche Bank, had advised the firm on investment decision.

"We were referred by reputed international investment banks to invest in Swan Telecom when we were exploring investment opportunity in India," Etisalat Senior Vice- President, Corporate Communications, Ahmed bin Ali told PTI.

"There were several options given to us. The banks that had been recommending us for this were Citibank and Deutsche Bank," Ali said.

Swan was considered after studying different options in India. "The whole thing was given to us as government approved and there was no suspicion or question raised," mention Ali during interaction.

He, however, asserted that Etisalat remained committed to the Indian market and plans to raise stake in Etisalat DB.

Ali said Etisalat was not involved with Swan Telecom at the time of licence procurement and this fact should be taken into consideration by the Indian authorities.

"The day we entered into discussion shows that there is big gap between the date we started negotiating with Swan and the date of licence completion process. The authorities must reconsider this," Ali said.

Asked about his view on security concerns being raised about the company by the Indian government, he pointed out that being UAE-based, the organisation has expanded business in countries that share good relation with the country.

"This was one of the reasons that we invested in India. UAE government has 50% stake in Etisalat and we are very concerned about country's and company's image," he said.

Talking about Etisalat's relationship with Chinese companies, he said that Etisalat is sourcing equipment from same Chinese companies that supply equipment to other Indian telecom companies as well.

"There has never been any issue with supplies made by Chinese companies to Indian telecom companies. Therefore this should not be a reason for security concern," he said.

About Etisalat's operation in India, he said being an MNC Etisalat is present in 18 countries like any other MNC and hence downlplayed the reason being given by security agencies.

"There are many MNCs which operate in various countries. You can see this in your region as well," Ali added.