Mobily inks SAR 3 bln loan with Alinma to replace existing facility

Etihad Etisalat Co. (Mobily) signed on Tuesday a SAR 3 billion financing agreement with Alinma Bank to replace an existing facility, the company said in a bourse statement.

The ten-year credit is unsecured and no related parties are involved in the deal.

The facility will be used for general corporate purposes, including capital expenditure.

This finance comes as part of the company’s management efforts to improve liquidity, cut finance costs, and have better terms and conditions.

It provides the telecom operator with an additional, non-binding credit solvency, as it allows Mobily to use the total facility, the statement added.

The deal success reflects the company’s improved credit rating and enhances banks’ confidence in Mobily, the statement added.