Zain Saudi Arabia signs a rescheduling agreement of 3.9 billion riyals

The Saudi Telecom Company (Zain Saudi Arabia) has signed an agreement to reschedule a joint murabaha financing amounting to 3.85 billion riyals (out of the 5.9 billion riyals due in 2023). < / p>

The company said in a statement to the Saudi market (Tadawul), today, Tuesday, that the financing has been rescheduled until 2025, with a total value of 6 billion riyals and a grace period of repayment The financing asset is two years from the date of refinancing, with better commercial terms

and she indicated that this agreement includes working capital facilities of one billion riyals (it was 647 million riyals in 2018), which was extended until 2025, which will provide additional liquidity. To finance the company's business growth plans.

She also noted that on September 30, 2020, the company will only withdraw the value of the outstanding amount from the murabaha financing (3.85 billion riyals) and the rest of the amount will be withdrawn in installments including Compatible with the company's plans (including the payment of payments owed to the Ministry of Finance from 2021).

and the company indicated that the banks participating in this financing are Al-Rajhi Bank, the Arab National Bank, the Saudi Fransi Bank, the National Bank of Kuwait, in addition to the Samba Financial Group and Al-Jazira Bank. , Gulf International Bank, Credit Agricole Bank.

He revealed that these facilities are partially guaranteed by a guarantee given by the mobile telecommunications company, and a pledge of some of the company's shares owned by some of the founding shareholders in addition to the pledge of some contracts and receivables.

She continued: This preferential long-term extension comes after fruitful discussions with Islamic and traditional banking institutions at the local, regional and international levels.

and noted (Zain Saudi Arabia) that the refinancing shows the confidence of Saudi and international banks in the financial strength of the company, its merit and its ability to fulfill its financial obligations.

She also pointed out that the rescheduled murabaha financing is important in reducing the cost of debt, improving financial performance, and the profitability of the company.