Saudi Arabia's Mobily has signed a $200 million vendor financing agreement with Canada's export credit agency to buy equipment from Alcatel Lucent, the kingdom's number two telecommunications operator said on Sunday.

Credit Agricole, Societe Generale and Bank of Tokyo Mitsubishi are lead arrangers on the sharia-compliant facility, which has a 10.5 year tenor and will be utilised over two years.

Mobily, which competes with Saudi Telecom Company (STC) and Zain Saudi, will repay the loan in 17 semi-annual instalments.

The loan has a fixed rate of 2.52 per cent per year, Mobily said in a statement to Riyadh's bourse.

Mobily had a 39 per cent share of Saudi's mobile subscribers as of March 31, according to Kuwait's Zain, the parent firm of Zain Saudi. STC is market leader with 44 per cent, while Zain Saudi claims the remaining 17 per cent.-Reuters