Zain KSA defers $2.4bn loan

Loss-making telco defers debt maturity for the fifth time
Zain KSA has failed to make a profit since its launch in 2008.
Zain KSA has failed to make a profit since its launch in 2008.

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Zain KSA, Saudi Arabia’s third mobile operator, extended the maturity of a $2.4 billion loan for the fifth time yesterday.

The loss-making telco deferred the maturity date of the Murabaha Facility for another 21 days, leading to speculation about its ability to service its debts.

The telco, which is an affiliate of Kuwait’s Zain Group, agreed with lending banks to delay the maturity of the Murabaha facility to December 19. The loan was originally due in July 2011.

"The Company announces that it has been granted an approval from the Lenders to extend the maturity date of the syndicated Murabaha facility until 19 December 2012 and could also be extended further," Zain KSA said a statement posted on the Saudi bourse.

Zain KSA saw its net loss deepen by 2% in Q3 compared to the same period last year.
 

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