Zain KSA, the Saudi business of Kuwait-based Zain Group, has signed a two-year SR2.25bn (US$600m) Murabaha refi, according to a statement to the Saudi bourse cited by Reuters. The proceeds will be used to finance capital projects and meet previous…
Zain KSA, the Saudi business of Kuwait-based Zain Group, has signed a two-year SR2.25bn (US$600m) Murabaha refi, according to a statement to the Saudi bourse cited by Reuters. The proceeds will be used to finance capital projects and meet previous obligations, according to the statement.
Arab National Bank and Banque Saudi Fransi were among the local banks reportedly involved in the transaction.
Bahraini incumbent Batelco and local investment firm Kingdom Holding have offered to buy Zain’s 25% stake in Zain KSA, the country’s number three mobile operator behind STC and Etisalat-owned Mobily. The deal was a condition to Etisalat’s now-abandoned US$11.7bn offer to buy 46% of Zain. The three parties involved have now signed a term sheet and say that due diligence will start soon. It has yet to be clarified whether the buyers would take over Zain’s guarantees on the unit’s US$3.8bn in debt, and many in the market question whether Batelco will be able to raise financing to pay for the deal due to the current political unrest in the country.
