Mobily signs two agreements for vendor financing

27 Feb 2014

Etihad Etisalat (Mobily), Saudi Arabia’s second largest cellco in terms of subscribers, has signed two agreements with the Swedish Export Credits Guarantee Board (EKN) and the official Export Credit Agency of Finland (Finnvera) for combined loans worth SAR2.1 billion (USD559.95 million). According to a press release on the Saudi Stock Exchange (Tadawul) website, the Sharia-compliant loan has tenure of ten years and a utilisation period of one and a half years; the appointed banks are Credit Agricole and Deutsche Bank, while Societe General will act as the mandated lead arranger. The loan will be repaid in 17 semi-annual equal instalments, with a fixed rate of 2.4% per annum. The financing is going to be used for the acquisition of network equipment from equipment providers Nokia Solutions & Networks (NSN) and Ericsson, in order to further accelerate, modernise and expand its 2G, 3G and 4G Long Term Evolution (LTE) networks over the next two years.

Saudi Arabia, Mobily (Etihad Etisalat)