Zain Saudi Arabia (Zain KSA) has gained consent from investors to extend the maturity of an Islamic financing facility valued at about SAR9.75bn (US$2.6bn) for an extra six months.
The mobile operator said in a statement on the Saudi bourse it had…
Zain Saudi Arabia (Zain KSA) has gained consent from investors to extend the maturity of an Islamic financing facility valued at about SAR9.75bn (US$2.6bn) for an extra six months.
The mobile operator said in a statement on the Saudi bourse it had exercised an option within the facility agreement allowing it to extend the term of the loan, provided it had not previously defaulted and all investors gave written consent.
Zain KSA said the facility will now mature on 27 July 2012.
“This extension is a significant endorsement by the Murabaha investors of Zain’s business plan and prospects and places the company in a better liquidity position to meet its financial/operational obligations in the near future,” the statement read.
Earlier this month, Zain KSA said its accumulated losses had dropped 11% to SAR461m (US$122.9m) as a result of lower international network call charges and maintenance costs.
In October, the company announced plans to cut its capital by 66% before raising SAR$6bn (US$1.6bn) through a rights issue as part of a new capital restructuring programme.
