Zain's Jordan subsidiary gets $70.5m loan
Amman, June 3, 2010
Kuwait-listed mobile operator Zain's Jordanian arm secured a $70 million loan from Jordan-Kuwait Bank to finance expansion of its network with new technology, the firm said on Thursday.
Wholly owned unit Zain-Jordan is the largest mobile operator in the kingdom, with around 2.5 million subscribers and a share of 42 per cent in a market with almost 100 per cent penetration.
'This financing deal will reflect on the performance of the company and its future plans by applying the latest technology at very competitive prices,' Abdel Malek Jaber, the CEO of Zain Jordan said in a statement.
Its main competitor, with nearly 2 million subscribers or over 30 per cent of the market, is Jordan Telecom Group, in which France Telecom owns a 51 per cent stake.
Zain Jordan had sought to expand into the lucrative Palestinian market through commercial deals that bring Palestine Telecommunication Comoany's (Paltel) 1.5 million subscribers into Zain's borderless mobile phone platform.
Zain revived earlier this year initial discussions to gain majority control of Paltel, which is the largest mobile operator in the West Bank and Gaza, after cancelling the deal last year.-Reuters