Zain KSA renews SR2.25b commercial borrowing facility

Zain Saudi Arabia (Zain KSA) announced the signing of a long-term commercial borrowing facility with a syndicate led by Arab National Bank and include four banks namely Arab National Bank, Banque Saudi Fransi, Gulf International Bank B.S.C. and Samba Financial Group. Wissam Nazih Farhat, Chief Finance Officer at Zain KSA, said “today we have taken another important step in our continued efforts to transform the Company. Based on the success of the Company’s transformation plan, the Company has reported sustained and consistent improvements in its financial performance for the previous six quarters.” He added “this new SR2.25 billion loan facility was signed on June 2, it is for a tenor of two years until May 31, 2018, extendable for one additional year to May 30, 2019. The principle amount is due to be repaid or refinanced upon maturity of the loan. We have been able to reach very competitive terms for this facility in a challenging market environment, however as part of the Company’s transformation plan we continue to seek ways of optimizing our financing costs.” Farhat further said “covered with an unconditional and irrevocable guarantee by Zain Group of Kuwait, the proceeds of this new facility will be used to repay the previous facility maturing on June 5, 2016. It is also subordinated to the main Murabaha Facility amounting to SR 8.5 billion. We appreciate the commitment of our lenders and Zain Group in finalizing all the arrangements needed to complete this important agreement.” — SG