Mobily raises $650m for network investment
Saudi Arabian telco raises funds from Finnvera and EKN
Saudi Arabian operator, Mobily, has raised $650m in long-term vendor financing from two banks.
Mobily signed two agreements on 11 July 2013, with the official Export Credit Agency of Finland (Finnvera) and the Swedish Export Credits Guarantee Board (EKN), for $325m each, with no guarantees.
The Finnvera component of the funding was also announced separately earlier in the month, while the $325m raised from EKN was not previously mentioned.
The purpose of the Shariah Compliant financing is to acquire network equipment from Nokia Siemens Networks (NSN) and Ericsson.
The total tenor of the facilities is 10 years, and will be used during the next 18 months.
The loan will be repaid in 17 semi-annual equal installments, and has been priced at a fixed rate of 1.71% a year.