14 February 2018
| Alan Burkitt-Gray
Kuwaiti operator Viva is to borrow the equivalent of $133 million to upgrade its network.
The five-year-deal, for 40 million Kuwaiti dinars, is with
Boubyan Bank and includes a Murabaha facility, which conforms
with Islamic custom.
According to Reuters, Boubyan Bank is a financial institution
that provides banking and investment services in accordance to
the Islamic Sharia principles through a network branches across
"This strategic partnership with Boubyan Bank is a robust
ground to further expand and develop Viva’s
operations by investing in its network and its high quality of
services, products and technical solutions," said
Viva’s CEO, Salman Bin Abdulaziz Al Badran.
The deal marks the tenth anniversary of the foundation of the
company, which is quoted on the Kuwaiti stock exchange but is
majority controlled by Saudi Arabia’s STC.
Viva has 2.4 million customers and has revenues of over $900
million a year, on which it makes profits of over $130 million
a year. The company started in 2008 as the third
operator in the market.
Al Badran said: "Our strong competition in the Kuwaiti telecom
market through meeting our customers’ aspirations
and ambitions, proves our leadership and promotes our
capability to deliver the best."
Boubyan Bank CEO Adel Abdulwahab Al-Majed said the deal will
"help fund the company’s expansion plans and
reflect positively on the company’s clients and
help achieve the company’s domestic expansion
He added: "Over the past years, Boubyan Bank succeeded in
achieving remarkable growth rates in its corporate credit
portfolio by attracting a number of operational companies known
for their financial and economic creditworthiness while
continuing to maintain the highest standards of credit quality,
studying and diversifying risks."