Zain Saudi extends maturity on $600m facility

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Telecom operator Zain Saudi has extended the maturity of a $600m facility until May 1, according to a statement on Saudi Arabia's bourse, the latest debt roll over by the loss-making firm.

This was due to be repaid on April 3, but Zain Saudi - an affiliate of Kuwait's Zain - has extended the junior debt with the agreement of a lending syndicate led by Arab National Bank, and now has about $3bn in loans maturing within the next four weeks.

The operator, which has yet to make a quarterly profit since launching services in 2008, last week extended a $2.4bn Islamic loan to April 30.

This murabaha facility - a sharia-compliant cost-plus-profit arrangement - was originally due in July 2011, but has been put back multiple times.

Zain Saudi has said these extensions were to finalise the terms of a new financing deal to replace the murabaha and it gave a similar explanation for extending the junior debt, which is subordinate to the Islamic facility.

Zain Saudi had liabilities of SR19.5bn ($5.2bn) at 2012-end and it has struggled to compete against better-resourced rivals Saudi Telecom Co (STC) and Mobily, an affiliate of United Arab Emirates' Etisalat, which between them claim nearly 85 percent of the kingdom's mobile subscribers.

Zain Saudi made an annual loss of SR932m in 2012, compared with a loss of SR811m a year earlier and its revenue also fell 4.4 percent over the same period.

Zain upped its stake in Zain Saudi to 37 percent from 25 percent as part of its affiliate's capital restructuring in June, oversubscribing to a rights issue following a tepid response from other shareholders.

Zain Saudi's shares ended 0.6 percent higher on the Saudi bourse, 8 percent above November's record low.

Related:

Market Performance

Zain - Saudi Arabia
10.0
-0.09 -0.89 (%)
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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

1
Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams