Zain KSA signs agreement to withdraw SAR 2.8 bln from Murabaha facility

Logo of Zain KSA

Mobile Telecommunication Company Saudi Arabia (Zain KSA) signed an agreement to draw down SAR 2.77 billion from the syndicated Murabaha facility, amounting to SAR 6 billion, under better commercial terms, payable as a lumpsum after three years, according to a bourse filing.

This came to prepay the secondary Murabaha financing – due in June 2022- amounting to SAR 2.25 billion on April 28, 2022, and settle the due payment of SAR 525 million of the government loan.

The relevant financial impact cannot be determined at present, but the agreement will help pay the due debt this year and boost the company’s cash flows.

On Sept. 27, 2020, Zain KSA refinanced and extended the maturity date of its existing five-year SAR 3.85 billion syndicated Murabaha facility.

The company said that the facility, originally valued at SAR 5.9 billion and maturing in 2023, is extended until 2025 for a total amount of up to SAR 6 billion with a two-year grace period at better commercial terms.

The agreement includes a working capital facility of SAR 1 billion (originally SAR 647 million in 2018) until 2025, bringing additional liquidity for Zain KSA to fund its business growth plans.