Saudi Arabian mobile operator Mobily had signed a SAR10 billion ($2.6bn) refinancing agreement with seven local banks to refinance three of its existing long, medium and short term loans.
The refinancing arrangement, which has been concluded on better terms than the previous loans, gives Mobily access to banking facilities worth up to SAR10 billion payable in four tranches over five to seven years, including credit facilities.
Mobily negotiated the refinancing at 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.
Abdulaziz Alsaghyir, chairman, Mobily, said that the refinancing will allow the telco to grow revenues and to “maintain its leadership position in the Saudi broadband market”.
The seven local banks involved in the funding are: Samba Financial Group, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, Saudi British Bank (SABB), Al Rajhi Bank and Saudi Hollandi Bank.