Kuwaiti mobile operator Zain and Qatar Telecommunications Company (Qtel) are in talks with their lenders to refinance existing debt, banking sources close to the deals said.

One of the sources said that Qtel is more advanced in its discussions.

Difficult market conditions mean that if the loans are to happen then they are likely to be mainly dependent on support from existing banks, which means predominently club-type financings, the banker added.

Club deals are provided by a group of relationship banks and there is no syndication. Zain's previous loan was a $1.2 billion Islamic financing that signed in April 2008.

Qatar Telecom's most recent loan was a $3 billion, five-year term loan that was agreed in November 2007, and has a $2 billion, three-year deal that matures in April 2010.-Reuters