Zain KSA extends loan payment for five years

Saudi telco gains five year extension for repayment of oustanding $2.3bn
Zain Group, Zain KSA extends loan payment for five years


Zain Saudi Arabia has gained an extension on the outstanding $2.3 billion it owes on a Murabaha facility.

The telco extended the maturity date of the syndicated Murabaha facility for five years, to July 31, 2018.

The facility has been restructured as an amortising facility, 25% of which will be due during the fourth and fifth years of the loan, with 75% due at maturity.

The new arrangement will carry a decreased profit margin by around 18% compared to the previous agreement, with the possibility for further reduction in line with the improving credit metrics.

The agreement followed “long and detailed discussions” with investors, Zain KSA said.

The bookrunners of thwe facility are Al Rajhi Bank (ARB), Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Credit Agricole CIB (CACIB).

The Mandated Lead Arrangers are ARB, ANB, BSF, Boubyan Bank, CACIB, Gulf Bank (Kuwait), National Bank of Kuwait (NBK) and Saudi British Bank.

Zain KSA said that the extension marked “the final stage” of the firm’s balance sheet reorganization, following the $325 million Export Credit Agency Facility in June 2012, the Capital Restructuring and Rights issue in July 2012 and the $600 million Junior Debt Facility in June 2013.

“This reorganisation leaves the company extremely well positioned, with solid liquidity and a long term debt maturity profile, to take full advantage of the tremendous growth opportunities available in the fast growing Saudi telecom market. In addition to its strong balance sheet, the company also benefits from significant financial and managerial support from sponsor Zain Group, as well as a very attractive deferred payment arrangement in respect of its regulatory charges, which was announced recently,” the telco said in a statement.

Editor's Choice

Etisalat and Huawei complete industry's first trial of ‘Compact Optical Cross-Connect’
The trial of ‘OptiXtrans series OSN 9800 P32C’ cements Etisalat's leading position in technological innovation of transport networks and promotes application of OXC solution
UAE tech talents to represent nation in Huawei ICT Competition regional final
Winners will travel to China to compete against international finalists from around the Middle East region
Simplifying eight key authentication terms
Axel Hauer director EMEA Enterprise Sales, IAMS at HID Global looks at authentication in simpler terms

Most popular

Don't Miss a Story