Mobile Telecommunication Company Saudi Arabia (Zain KSA) has secured an Islamic facility of 5.5 billion riyals ($1.47 billion) from a group of local and regional banks.
The participating banks include Al Rajhi Bank, Arab National Bank, Saudi National Bank, Riyad Bank, and Gulf International Bank, the telco said in a statement to the Saudi bourse on Monday.
The proceeds will be used to repay existing Murabaha loans of SAR 4.7 billion and a SAR 500 million receivable discounting facility, both slated to mature on September 30, 2025.
The remaining SAR 300 million will be allocated for operational and investment requirements.
The new financing, with “flexible and favourable” commercial terms, has a five-year maturity timeline, including a one-year grace period. The repayment is due on September 30, 2030.
The loan is secured by a promissory note, the statement said.
(Editing by Seban Scaria seban.scaria@lseg.com )