In a further effort to address its debt problems, Zain Saudi Arabia, controlled by Kuwait’s Zain Group, has extended the maturity of its SR8.63bn (US$2.3bn) murabaha facility by five years to 31 July 2018.
The company said in a stock exchange…
In a further effort to address its debt problems, Zain Saudi Arabia, controlled by Kuwait’s Zain Group, has extended the maturity of its SR8.63bn (US$2.3bn) murabaha facility by five years to 31 July 2018.
The company said in a stock exchange announcement that the facility has been restructured as an amortising facility “25% of which will be due during years 4 and 5 of the life of the facility, with 75% due at maturity”.
Zain KSA pointed out that it has already partially repaid the facility, originally at SR9.75bn, utilising some of its internal cash resources.
The bookrunners for this facility are Al Rajhi Bank, Arab National Bank, Banque Saudi Fransi and Credit Agricole. The mandated lead arrangers are ARB, ANB, BSF, Boubyan Bank, CACIB, Gulf Bank, National Bank of Kuwait and Saudi British Bank.
Over the last 18 months, struggling Zain KSA has been regularly extending the maturity of its murabaha, against the backdrop of a SR1.75bn (US$466m) loss for 2012.
The operator has been confronted with increasing competition in the Saudi market dominated by STC and Mobily.
Zain Saudi said today (29 July) that the loan extension represents the last stage of its balance sheet reorganisation, following the US$325m export credit agency facility signed in June 2012, the capital restructuring and rights issue in July 2012 and the US$600m junior debt facility in June 2013.
“This reorganisation leaves the company extremely well positioned, with solid liquidity and a long term debt maturity profile, to take full advantage of the tremendous growth opportunities available in the fast growing Saudi telecom market,” Zain KSA stated.
The company added: “In addition to its strong balance sheet, the company also benefits from significant financial and managerial support from sponsor Zain Group, as well as a very attractive deferred payment arrangement in respect of its regulatory charges, which was announced recently.”
In early June, Zain KSA has signed an agreement with the finance ministry for the postponement of payments, worth SR5.6bn (US$1.49bn), to the government.
