Loan for kingdom's third-largest telecom operator is guaranteed by Kuwaiti parent company
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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.