Mobily signs a USD2.1bn loan with six banks

1 Feb 2017

Saudi Arabian telecoms provider Etihad Etisalat (Mobily) has signed a SAR7.9 billion (USD2.1 billion) Murabaha (Sharia-compliant cost-plus-profit) facility agreement with the National Commercial Bank (NCB), Banque Saudi Fransi (BSF), Samba Financial Group, Saudi British Bank (SABB), Rayed Bank and Al-Rajhi Bank. The unsecured seven-year loan has a two-year grace period and will be repaid in five years. Mobily will use the financing to re-profile its existing debt, the company said in a statement on Tadawul. The operator reported an 81.4% improvement on its net loss to SAR203 million for FY 2016, mainly due to booking a SAR800 million doubtful debt provision towards Zain Saudi Arabia in the previous period, in addition to lower general and administrative expenses.

Saudi Arabia, Mobily (Etihad Etisalat)