Saudi telco Mobily says closes $2.1bn loan deal
Telecom operator to refinance significant part of its debts following agreement with group of Saudi banks
Saudi Arabian telecom operator Etihad Etisalat (Mobily) said on Wednesday that it has concluded a deal with a group of Saudi banks for a SR7.9bn ($2.1bn) loan.
The telco said in a statement that National Commercial Bank, Banque Saudi Fransi, Samba Financial Group, Saudi British Bank, Riyad Bank and Al-Rajhi Bank have agreed the Murabaha facility to refinance a significant part of Mobily's current debt.
It said the new facility has 7 years maturity with 2 years grace period and 5 years repayment period. The facility is unsecured.
The statement added: "This facility will allow Mobily to re-profile its debt in a manner more consistent with its cash flow generation and release any refinancing risk over the medium and long term.
"It reflects the increased confidence of the creditors in Mobily, its strong credit worthiness and its future prospects."
Earlier this month, Mobily appointed Ahmed Abdelsalam Abdelrahman to replace its chief executive Ahmad Farroukh.
Mobily's board accepted the resignation of Farroukh and approved Abdelrahman's appointment effective 9 Jan.
The appointment follows the December 25 announcement from minority owner UAE telecommunications conglomerate Etisalat that its management agreement with Mobily had ended and the two parties were working on a new arrangement.