DUBAI: 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 9 billion riyals loan due later this month. The operator has rolled over the debt multiple times since its original maturity date in 2011.
Reuers
