Mobile Telecommunications Company Saudi Arabia, better known as Zain, has announced that it has successfully refinanced and extended the maturity date of its existing syndicated SR5.9 billion ($1.57 billion) Murabaha facility for five years.
Additionally, the agreement includes a working capital facility of SR647 million for two years, bringing additional liquidity to Zain Saudi Arabia to fund its digitally focused growth plans, the company said in a statement.
This long-term preferential extension comes after detailed and productive discussions with the regional Islamic and conventional banking community, it added.
With the financial support of Zain Group, Zain Saudi Arabia said it has gradually repaid SR3.5 billion of the facility from its original 2009 borrowing of SR9.4 billion, using its internal cash resources.
Prince Naif bin Sultan bin Mohammed bin Saud Al-Kabeer, chairman of Zain Saudi Arabia, said: “The extension of the Murabaha agreement at preferential terms underscores Zain KSA’s success in adopting a policy of prudent borrowing. It also reflects an enormous vote of confidence by the kingdom’s and international’s Islamic and conventional banking community in the company’s transformation and future growth plans.”
The global coordinators and bookrunners of the Murabaha facility are Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank and Credit Agricole CIB. The lenders are Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank, National Bank of Kuwait, Credit Agricole CIB, Gulf Bank, Ahli Bank of Kuwait, and Boubyan Bank.
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