June 5, 2013 / 1:45 PM / in 5 years

Zain Saudi signs $600 mln parent-guaranteed loan

DUBAI, June 5 (Reuters) - Zain Saudi, the kingdom’s third-largest telecom operator, has signed a 2.25 billion riyals ($600 million) Islamic loan guaranteed by its parent company.

The three-year murabaha facility - a sharia-compliant cost-plus-profit arrangement - will be used to refinance an existing deal which had been extended beyond its original maturity date, Zain Saudi said in a bourse statement.

Kuwait-listed parent Zain, which owns a 37 percent stake in the firm, has given “an unconditional and irrevocable guarantee” for the facility.

Four banks provided the loan - Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group.

Zain Saudi has a separate 9 billion riyals loan due later this month. The operator has rolled over the debt multiple times since its original maturity date in 2011. ($1 = 3.7502 Saudi riyals) (Reporting by David French; Editing by Matt Smith)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below