Zain Saudi Arabia in talks to refinance $2.5bn loan

Zain Saudi Arabia, the country's third-largest mobile operator, is in talks with lenders to refinance its $2.5bn Islamic syndicated loan that matures in July, banking sources close to the deal said.

The firm has come under pressure to restructure its capital after losses pushed it close to a limit on capital losses imposed by the bourse.

The original Murabaha loan was secured in 2009 to back the company's network expansion, with two tranches consisting of $775m and SR6.46bn ($1.72bn).

The company, an affiliate of Kuwait's Zain, extended the maturity for the deal - which was three years and four months - by six months to July 27 in January.

Both tranches were priced at 425 basis points (bps) over LIBOR and included a bullet repayment. Bookrunners were Al Rajhi Banking and Investment Corp and Credit Agricole CIB.

Zain Saudi was not available to comment.

The telecoms operator posted an 11 percent decline in losses in January, bringing the firm's accumulated losses to about SR9.6bn, around two-thirds of the company's SR14bn of share capital.

The results followed Kingdom Holding and Bahrain Batelco's failed $950m offer for a 25 percent stake in Zain Saudi after disagreements brought negotiations to a standstill in September last year.

Related:

Market Performance

Zain - Saudi Arabia
8.0
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

How Gulf SWFs have thrown funding lifeline to tech ventures

How Gulf SWFs have thrown funding lifeline to tech ventures

Saudi Arabia and other Gulf states have ploughed money into hot...

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Deal makes the Public Investment Fund a player in the technology...

Most Popular
Most Discussed
sponsoredTracking