Saudi Arabia-based mobile operator Etihad Etisalat (Mobily) has signed two facility agreements with the Swedish Export Credits Guarantee Board (EKN) and the Export Credit Agency of Finland (Finnvera) for a total SR2.1bn (US$560m).
Arranged by Credit…
Saudi Arabia-based mobile operator Etihad Etisalat (Mobily) has signed two facility agreements with the Swedish Export Credits Guarantee Board (EKN) and the Export Credit Agency of Finland (Finnvera) for a total SR2.1bn (US$560m).
Arranged by Credit Agricole, Deutsche Bank and Societe Generale, the vendor financing will be used to buy telecoms equipment from Ericsson and Nokia Siemens Networks, the company said in a stock exchange notice.
The facilities, which have been priced at an annual fixed rate of 2.4%, have a 10-year maturity and are Shariah-compliant.
The operator secured a similar US$650m long-term vendor financing in July last year from Sweden’s SEK and Finnvera. Credit Agricole and Deutsche Bank acted as arrangers.
Mobily noted at the time that the ECA financing would be the first of its kind for Saudi Arabia’s telecoms sector and would have a positive impact on its free cash flow. The carrier said it would continue to seek similar financings in the future.
