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
11.1
-0.06 -0.54 (%)
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
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew