Zain Saudi refinances, extends SAR 5.9 bln Murabaha facility

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) on Tuesday has refinanced and extended the maturity date of its five-year syndicated Murabaha facility of SAR 5.9 billion for an additional five years, the telecom firm said in a bourse statement.

The agreement includes a three-year grace period and a working capital facility of SAR 647 million for two years.

The facility’s global coordinators and book runners include Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank and Credit Agricole CIB.

The lenders are Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank, National Bank of Kuwait, Credit Agricole CIB, Gulf Bank, Ahli Bank of Kuwait and Boubyan Bank.

The facility is partially secured by a guarantee from Mobile Telecommunications Company K.S.C.P, a pledge of shares by founding shareholders and assignment of certain contracts and receivables.

The deal aims to fund Zain’s digitally focused growth plan, and is expected to improve its financial performance, profitability and leverage ratios, the statement added.

Last month, Zain filed for regulatory approval on a 38 percent capital cut to SAR 3.6 billion to write off accumulated losses of SAR 2.2 billion, after which it will solicit new capital through a rights issue, Argaam previously reported.