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Thu 6 Jun 2013 09:04 AM

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Zain Saudi signs $600m Islamic loan

Loan for kingdom's third-largest telecom operator is guaranteed by Kuwaiti parent company

Zain Saudi signs $600m Islamic loan
GCC telecoms

Zain Saudi, the kingdom's third-largest telecom operator, has signed a SR2.25bn ($600m) Islamic loan guaranteed by its parent company.

The three-year murabaha facility - a sharia-compliant cost-plus-profit arrangement - will be used to refinance an existing deal which had been extended beyond its original maturity date, Zain Saudi said in a bourse statement.

Kuwait-listed parent Zain, which owns a 37 percent stake in the firm, has given "an unconditional and irrevocable guarantee" for the facility.

Four banks provided the loan - Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group.

Zain Saudi has a separate SR9bn loan due later this month. The operator has rolled over the debt multiple times since its original maturity date in 2011.

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