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Mobile Telecommunications Company Saudi Arabia (Zain) announces the refinancing of its existing syndicated Murabaha facility at preferential terms with an additional working capital facility

ZAIN KSA 7030 -9.12% 12.56 -1.26

Mobile Telecommunications Company Saudi Arabia (Zain) announces that on 5 June 2018 it has successfully refinanced and extended the maturity date of its existing five years syndicated Murabaha facility of SAR 5.9 billion (USD 1.57 billion) renewed in 2013 and maturing this year, for additional five years with three years grace period. Moreover, the agreement includes a working capital facility of SAR 647 million (USD 172 million) for two years, bringing additional liquidity to Zain to fund its digitally focused business growth plans.

The Global coordinators and Book runners of the facility are Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank and Credit Agricole CIB. The lenders for this facility are Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank, National Bank of Kuwait, Credit Agricole CIB, Gulf Bank, Ahli Bank of Kuwait and Boubyan Bank. This facility is secured partially by a guarantee from Mobile Telecommunications Company K.S.C.P, a pledge of shares by some of the founding shareholders and assignment of certain contracts and receivables.

This long-term preferential extension comes after detailed and productive discussions with the Saudi, regional and international Islamic and conventional banking community. This refinancing shows the confidence of the Saudi and international banks in Zain financial strength, credit worthiness and its ability to meet its financial obligations. This favourable refinanced Murabaha facility represents a significant stage in supporting the balance sheet restructuring roadmap of Zain, following the recently announced capital reduction and subsequent increase through a rights issue that is planned to occur in the second half of 2018, subject to the Companys General Assembly meeting and Regulatory approvals. The capital restructuring is expected to improve the financial performance, profitability and leverage ratios of the Company.

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