Mobily inks deal with Nokia, Ericsson for USD650m

1 Jul 2013

Saudi Arabia’s second largest cellco in terms of subscribers Etihad Etisalat (Mobily) has signed two 90-day Memorandum of Understanding (MoU) agreements with data networking and telecommunications equipment providers Nokia Siemens Networks and Ericsson, in order to arrange long-term financing of USD650 million for the acquisition of equipment from both companies, Gulf News reported. According to the press release published on the Saudi Stock Exchange (Tadawul) website, the investment will be used to upgrade the infrastructure capabilities of the Saudi cellco, introduce new technologies, and strengthen its competitiveness in the business segment. The company has mandated Credit Agricole and Deutsche Bank to structure and arrange the financing with CIRR (Commercial Interest Reference Rate) of 1.84% per annum, which has a tenure of ten years, utilisation period of 1.5 years, and an extended repayment period of 8.5 years.

The transaction will be also monitored by the Export Credit Agency of Finland (Finnvera) and the Swedish Export Credit Corporation (SEK).