Mobile Telecommunications Company Saudi Arabia (Zain KSA) refinanced and extended, on Sept. 27, the maturity date of its existing five-year syndicated Murabaha facility amounting to SAR 3.85 billion.
The company said in a bourse statement that the facility, originally valued at SAR 5.9 billion and maturing in 2023, is extended till 2025 for a total amount available of up to SAR 6 billion with two years grace period and at better commercial terms.
The agreement includes a working capital facility of SAR 1 billion (originally SAR 647 million in 2018) until 2025, bringing additional liquidity for Zain KSA to fund its business growth plans.
Therefore, the company will drawdown, on Sept. 30, only the outstanding amount of the existing agreement and will withdraw the remaining amount as per business requirements (including the repayment of the installments to the Ministry of Finance, starting from 2021).
The financers include Al Rajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, National Bank of Kuwait, SAMBA Financial Group, Bank AlJazira, Gulf International Bank, and Credit Agricole CIB.
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Dividend Details |
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Original amount in 2018 |
SAR 5.9 bln |
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Refinancing amount |
SAR 3.85 bln |
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New Murabaha financing amount |
SAR 6 bln, to be withdrawn in instalments as per company requirements |
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Maturity date for financing |
2023 |
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Maturity date for financing |
2025 |
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Grace period for repayment |
Two years from the date of refinancing |
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Participating banks |
Al Rajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, National Bank of Kuwait, SAMBA Financial Group, Bank AlJazira, Gulf International Bank, and Credit Agricole CIB |
The facility is secured partially by a guarantee from Mobile Telecommunications Company K.S.C.P (a related party), a pledge of shares by some of the founding shareholders and assignment of certain contracts and receivables.
The long-term preferential extension came after detailed and productive discussions with the local, regional and international Islamic and conventional banking community, the statement said, adding that it is expected to reduce the cost of the debt, improve the financial performance, and profitability of the company.
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