MOBILY SIGNS SAR 10BN REFINANCING ARRANGEMENT WITH LOCAL BANKS

Following an announcement by Etihad Etisalat (Mobily) of a proposed refinancing arrangement on October 26, 2011, Mobily, announced that it had signed a SAR 10 billion refinancing agreement with seven local banks to refinance three of its existing long, medium and short term loans.
The loans being refinanced, which are covered 3.5 times, are the remainders of a SAR 10.781 billion long term loan negotiated by the company in 2007, a SAR 1.5 billion medium term loan negotiated in 2009 and a SAR 1.2 billion short term loan negotiated in 2010.
The refinancing arrangement, which has been concluded on better terms than the previous loans, gives Mobily access to banking facilities of, including credit facilities, up to SAR 10 billion payable in four tranches over five to seven years.
This is a clear indication of Mobilys financial strength and its strong cash flow.
The company has chosen to take this step now rather than in the future, as Mobily was able to negotiate the refinancing at a competitive Murabaha rate of SAIBOR (Saudi Interbank Offered Rate) + 0.70% until the end of the loan repayment period of two of the tranches and SAIBOR + 0.65% until the end of the loan repayment period of the other two tranches.

The Chairman, Eng Abdulaziz Alsaghyir said that the refinancing will allow Mobily to grow revenues and to maintain, as well as entrench, its leadership position in the Saudi broadband market. It will also allow Mobily to provide its users with the best possible data services, applications and an advanced high-speed infrastructure based on the best technologies.

The seven local banks are: Samba Financial Group, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, Saudi British Bank (SABB), Al Rajhi Bank and Saudi Hollandi Bank.