UAE telco Etisalat has asked banks to extend commitments to a loan for its $5.79 billion acquisition of a stake in Maroc Telecom but will not pay fees until the deal closes, according to a report from Reuters. Etisalat agreed an $8 billion loan in April to finance its acquisition of the stake in Maroc Telecom from Vivendi . One banker told Reuters that although the banks have had the loan commitment on their balance sheets for eight months they will not earn any money until the acquisition is completed and Etisalat signs and draws down the loan, which is expected in January. The report states that banks are usually paid 'ticking fees' on acquisition loans from the time that the loan is agreed until the acquisition is completed. The absence of ticking fees for Etisalat's loan indicates banks' desperation to book fee-earning acquisition loans in a year of low M&A activity, according to Reuters. The full report can be read here .
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