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.


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.

Webinar #2 | Register to attend - Intergenerational signalling consolidation for the 5G era

Join CommsMEA, Deutsche Telekom and NetNumber as they explore opportunities for intergenerational signalling consolidation for the 5G era. The webinar is free but can only be accessed by registering below in advance.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story