News

Zain Saudi extends loan repayment by five years

Zain Saudi has been granted a five-year extension on its outstanding $2.3 billion Islamic loan, Reuters reports.

The loss-making operator converted a $2.4 billion Islamic loan to a payback facility, and has reportedly repaid a portion of this from internal resources.

According to a statement yesterday, the company will return 25% of the outstanding payment in the last two of five years, and the remaining 75% on maturity at July 31 2018.

The payback facility was set for completion in 2011, but has been delayed several times.

Zain Saudi’s statement confirmed that the facility would see profit margins decrease by 18% with the possibility of further reduction.

Al Rajhi Bank, Arab National Bank, Banque Saudi Fransi and Credit Agricole were said to be book runners for the facility.

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