Mobile Telecommunication Company Saudi Arabia (Zain) has signed a new Islamic Murabaha facility valued at SAR 2.25 billion to refinance its existing $599.808 million (SAR 2.250 billion) commercial loan with better terms.
The facility will be used to repay the existing facility with Commercial and Industrial Bank of China indicated in the company’s announcement on Tadawul website dated 16 August 2016, with better terms and reduced cost Islamic Murabaha facility.
Zain said the step reflects the improvement in the company’s performances and the continuous trust and support of the core banking group participating in the transaction, according to a statement to the Saudi Stock Exchange (Tadawul) on Sunday.
The facility creditors consist of a consortium including Al Rajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, First Abu Dhabi Bank (Saudi Branch), and Samba Financial Group.
The two-year facility could be extended for one year at Zain’s request, according to the statement.
The loan is fully secured by a corporate guarantee from Mobile Telecommunications Company (Zain group), the statement added.
It is worth noting that the loan has no material financial impact on Zain’s financials.