Zain Saudi has extended the maturity of a SR9.75bn ($2.6bn) loan by two months, according to a statement on the Saudi bourse website.
“The firm announces that on September 26 it has received approval from lenders to extend the maturity date for the joint Murabaha by two additional months, changing the maturity date to November 28,” the statement said.
This is the second time that the debt-laden telco has extended the maturity of the loan. The loan was initially due in July but was extended to September 27, according to a report from Reuters.
Zain Saudi Arabia said it had already paid back part of the loan, SR750m, on August 27 and is in the process of finalising a long-term finance agreement to replace its current loan, the report added.
Saudi Arabia, which competes with STC and Mobily, launched a $1.6bn rights issue in July to strengthen its balance sheet.
The rights issue was oversubscribed after Kuwait's Zain raised its stake in Zain Saudi to 37% following a weak response from other shareholders, according to Reuters.