Zain Saudi has obtained approval to extend its SAR9bn (US$2.4bn) loan to 19 December, which “could also be extended further”, said the telco in a stock exchange announcement today.
This is the fifth time the indebted Saudi arm of the telco has…
Zain Saudi has obtained approval to extend its SAR9bn (US$2.4bn) loan to 19 December, which “could also be extended further”, said the telco in a stock exchange announcement today.
This is the fifth time the indebted Saudi arm of the telco has deferred payment of its syndicated Murabaha facility.
“The purpose of this extension is to allow the company and its lenders the opportunity to finalize a new long-term financing agreement to replace the existing one,” said the company in the statement.
“This move will significantly improve the financial state of the company.”
Analysts told TelecomFinance earlier today prior to the announcement that banks would “have no choice” but to extend the loan as Zain Saudi could not afford to pay. One analyst added that lenders may now be pressing for more guarantees from financially solvent parent company Zain Kuwait.
