Mobile Telecommunications Company Saudi Arabia (Zain KSA) has raised a 6 billion riyals ($1.60 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, it said in a bourse filing.
The Islamic loan, with a murabaha structure, refinances until 2025 an existing debt facility with an outstanding amount of 3.85 billion riyals.
The new debt package has a two-year grace period and better commercial terms, said the company, which is 37% owned by Kuwait’s Zain Group.
On Sept. 30, “the company will drawdown only the outstanding amount of the existing agreement (3.85 billion riyals) and will withdraw the remaining amount as per the company business requirements,” it said.
Murabaha financing is a cost-plus-profit arrangement compliant with Islamic finance standards.
“This favorable refinanced Murabaha facility is expected to reduce the cost of the debt, improve the financial performance, and the profitability of the company,” Zain KSA said.
The refinancing was provided by a group of banks comprising Al Rajhi Banking and Investment Corporation 1120.SE, Banque Saudi Fransi 1050.SE, Arab National Bank 1080.SE, National Bank of Kuwait NBKK.KW, SAMBA Financial Group 1090.SE, Bank AlJazira 1020.SE, Gulf International Bank, and Credit Agricole CIB CAGR.PA.
Source Zawya