Zain KSA secures SAR2.25bn loan from four banks

6 Jun 2016

Saudi Arabian telecoms operator Zain has inked a long-term commercial borrowing facility worth SAR2.25 billion (USD599 million) with a two-year tenor that is extendable by one additional year (until 30 May 2019). The principal amount will be repaid in one bullet payment at the maturity date. The loan was provided by a syndicate led by Arab National Bank and also including Banque Saudi Fransi, Gulf International Bank and Samba Financial Group. Wissam Nazih Farhat, Chief Finance Officer at Zain KSA, said: ‘Covered with an unconditional and irrevocable guarantee by Zain Group of Kuwait, the proceeds of this new facility will be used to repay the previous facility maturing on 5 June 2016. It is also subordinated to the main Murabaha [Sharia-compliant cost-plus-profit] facility amounting to SAR8.5 billion.’

Saudi Arabia, Zain Kuwait, Zain Saudi Arabia