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Mobily takes Islamic loan

Etihad Etisalat (Mobily) has signed an Islamic financing agreement of US$2.88 billion to fund its expansion plans in Saudi Arabia.

The operator said it plans to use the fund to finance operations and infrastructure expansion and to pay off short-term debt. Banks include Samba, Saudi French Bank with Calyon, Saudi Holland Bank with ABN Amro, National Commercial and National Bank of Abu Dhabi.

Mobily claims it has been granted the lowest rate of Islamic financing ever to a telecom company in the Middle East and Africa with the loan.

“Despite the fact that Mobily is only two years old, local and international banks were quickly responding to the company’s business plan presented to the banks,” it said.

Launched in 2005, Saudi Arabia’s second mobile operator Mobily, which is seeking to obtain the country’s second fixed services licence currently on offer in the Kingdom, has enjoyed rapid success in Saudi Arabia, garnering six million customers since the start of its operations.

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