DUBAI, July 29 Loss-making telecom operator Zain
Saudi has reached an agreement to extend the
outstanding $2.3 billion on an Islamic loan facility by five
years, the company said in a bourse statement on Monday.
Zain Saudi, 37-percent owned by Kuwait's Zain,
said it has converted the $2.4 billion Islamic loan to an
amortizing facility and has repaid a portion of it from internal
The outstanding $2.3 billion has been extended for five
years, with 25 percent of the loan due in the last two years of
the extended period and the remaining 75 percent on maturity at
July 31, 2018.
The murabaha facility - a sharia-compliant cost-plus-profit
arrangement - was originally due in 2011, but has been put back
Zain Saudi, which has yet to make a quarterly net profit
since launching services in 2008, earlier in June received
government approval to defer payment of licence-related fees
that could total around $1.49 billion over seven years.
The new credit facility sees profit margin decreased by 18
percent with the possibility of further reduction going forward,
Zain Saudi said in a bourse statement on Monday.
Al Rajhi Bank, Arab National Bank,
Banque Saudi Fransi and Credit Agricole were
bookrunners for the facility, Zain Saudi said.
(Reporting by Dinesh Nair; Editing by Praveen Menon)