Saudi Arabia-based mobile operator Etihad Etisalat (Mobily) has signed two agreements with Finnish export credit agency Finnvera and Swedish export credit corporation SEK for US$650m of long-term vendor financing.
In a notice to the Saudi Stock Exchange…
Saudi Arabia-based mobile operator Etihad Etisalat (Mobily) has signed two agreements with Finnish export credit agency Finnvera and Swedish export credit corporation SEK for US$650m of long-term vendor financing.
In a notice to the Saudi Stock Exchange on 14 July, the company said that the shariah-compliant funding will be used to buy network equipment from Nokia Siemens Networks (NSN) and Ericsson.
The facility has a ten-year tenor and “has been priced at a very competitive fixed rate of 1.17% per annum”, Mobily stated, adding that the pricing reflects “the strong financial position of the company, especially in a rising cost of financing environment”.
As reported previously, the mobile operator mandated Credit Agricole and Deutsche Bank to structure and arrange the Islamic financing. Latham & Watkins is acting as legal counsel for the mobile operator while Allen & Overy is advising the lenders.
Mobily had said earlier that the proposed ECA financing would be the first of its kind for Saudi Arabia’s telecoms sector and would have a positive impact on the company’s free cash flow. The carrier said it will continue to seek similar financings in the future.
