Zain Saudi extends USD2.6bn loan

1 Oct 2012

Saudi Arabia’s third mobile operator Zain Saudi has extended the maturity of a USD2.6 billion loan for a further two months as it looks to sign a new long-term financing agreement to replace the current facility. Zain has already extended the joint Murabaha loan once, from July to 27 September, and the new agreement expires on 28 November, Reuters reports. Zain Saudi Arabia (originally known as Saudi MTC) won an auction for the Kingdom’s third national mobile licence in March 2007 with its bid of SAR22.91 billion (USD6.11 billion), according to TeleGeography’s GlobalComms Database. Since then, however, the firm has struggled financially, accumulating losses of USD2.7 billion by end-March 2012. It claimed 7.4 million subscribers and around 13% of the Saudi cellular market by mid-2012.

Saudi Arabia, Zain Saudi Arabia