www.WirelessFederation.com/news: Zain Saudi Arabia, the new entrant in the country, is about to close a deal for $2.5 billion loan, a spokesman for its parent company Zain reportedly unveiled. “This is a two-year murabaha (Islamic financing),” the spokesman said. Al-Rajhi Bank 1120.SE and Banque Saudi Fransi are leading the refinancing facility, Zain said.
The facility has been oversubscribed since its launch in April and priced at 425 basis points over LIBOR, Zain said. This will receive a 6 months of extension at the behest of the borrower and will be used to fund the expansion of Zain Saudi Arabia’s network.
The murabaha will replace a previous one worth 9.4 billion riyals ($2.51 billion) which is to mature on Aug. 12, he said.
Zain SA has stated that it has agreed with the banks to postpone from July 27 to Aug. 12 the maturity of the previous murabaha.