Saudi Arabia’s second largest cellco in terms of subscribers Etihad Etisalat (Mobily) has signed two agreements with the official Export Credit Agency of Finland (Finnvera) and the Swedish Export Credits Guarantee Board (EKN) for combined loans worth USD650 million. According to a press release published on the Saudi Stock Exchange (Tadawul) website, the Sharia-compliant loan has tenure of ten years, utilisation period of one and a half years, and an extended repayment period of eight and a half years. The loan will be repaid in 17 semi-annual equal instalments, with a fixed rate of 1.71% per annum. The financing is going to be used for the acquisition of network equipment from data networking and telecommunications equipment providers Nokia Siemens Networks (NSN) and Ericsson.
As previously reported by TeleGeography’s CommsUpdate, the company signed two 90-day Memorandum of Understanding (MoU) agreements with NSN and Ericsson in July 2013, in order to arrange the long-term financing for the acquisition of equipment from both companies. The company mandated Credit Agricole and Deutsche Bank to structure and arrange the financing, which was to be monitored by Finnvera and EKN.