Zain Saudi extends $2.4bn loan again
Dubai, December 19, 2012
Zain Saudi extended the maturity of a 9 billion riyals ($2.40 billion) Islamic loan for another six weeks on Wednesday, the fifth time the loss-making telecom operator has deferred payment.
The company, an affiliate of Kuwait's Zain, has agreed with lending banks to put back the maturity of the murabaha facility - a sharia-compliant cost-plus-profit arrangement - originally due in July 2011, until Jan. 30.
A longer term deal appears to remain elusive.
The firm said the purpose of this extension was to allow it and its lenders the opportunity to finalise a new long-term financing agreement to replace the existing one. It cited the same reason when it previously extended the loan on November 28.
"Subject to the further consent of the lenders of the murabaha facility, the maturity date may be further extended," Zain Saudi said in a statement to the Saudi bourse.
Zain Saudi has not made a quarterly net profit since launching operations in 2008.
Last month, it said its third-quarter loss widened by 2 percent over the prior-year period, while for the nine months to September 30 its revenue fell 6 percent and costs rose 3 percent.
The company's debts stood at 19.4 billion riyals as of September 30 and it has struggled to compete against better-resourced rivals Saudi Telecom Co (STC) and Mobily, an affiliate of UAE's Etisalat, which between them claim nearly 90 percent of the kingdom's mobile subscribers. - Reuters
More IT & Telecommunications Stories
- Dubai mobile emissions below global standards
- Nawras signs capacity contract with SES
- Etisalat showcases satellite solutions at Cabsat
- Batelco launches 4G LTE roaming
- Gulf Air clinches best innovation award
- Viva inks Pepsi partnership deal
- Du offers free smarphones on tablet purchase
- Batelco launches double credit promotion
- Cyber threats focus of Bahrain security talks
- Bahrain tech expo to honour innovators
- Scope ME named distributor for InfoWatch
- Nawras quadruples 3G+ mobile services
- Menatelecom expands bill paying network
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite
- Batelco announces new board
- Batelco offers improved broadband
- You don't own phone numbers, warns TRA
- Tech giants back top Qatar ICT event
- Du to provide wifi access in public areas
- Zain finalises $800m, five-year loan facility
- Ooredoo Q4 net profit falls 36pc to $140m
- Mobily, Etisalat team up for LTE roaming
- Batelco approves $84m dividends for 2013
- Etisalat Q4 profit rises 70pc to $394m
- Kenya telecom firm to join Etisalat SmartHub
- Aruba appoints new sales director