ZAIN EXTENDS THE MATURITY DATE OF ITS MURABAHA FACILITY FOR 5 YEARS

Further to the announcement by Mobile Telecommunications Company Saudi Arabia (the Company) on Tadawul's website on 26 June 2013, the Company announces that it successfully extended the maturity date of its syndicated Murabaha facility for 5 years ended 31 July 2018.
The facility has been restructured as an amortizing facility, 25% of which will be due during years 4 and 5 of the life of the facility, with 75% due at maturity.

The Company has partially repaid the facility, utilizing a portion of its internal cash resources, and the current outstanding principal stands at USD 2.3 billion (SAR 8.63 billion). Moreover, the new facility arrangement will carry a decreased profit margin by around 18% (equivalent to 75 Basis Points) compared to the previous agreement, with the possibility for further reduction in line with the improving credit metrics.

This long term extension comes following long and detailed discussions with the Investors, and the Company would like to thank the Investors for their commitments and their efforts in reaching this successful closing.

The bookrunners of this facility are Al Rajhi Bank (ARB), Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Credit Agricole CIB (CACIB).

The Mandated Lead Arrangers for this facility are ARB, ANB, BSF, Boubyan Bank, CACIB, Gulf Bank (Kuwait), National Bank of Kuwait (NBK) and Saudi British Bank.This extension represents the final stage of the balance sheet reorganization of the Company, following the USD 325 million Export Credit Agency Facility in June 2012, the Capital Restructuring and Rights issue in July 2012 and the USD 600 million Junior Debt Facility in June 2013.

This reorganization leaves the Company extremely well positioned, with solid liquidity and a long term debt maturity profile, to take full advantage of the tremendous growth opportunities available in the fast growing Saudi telecom market.

In addition to its strong balance sheet, the Company also benefits from significant financial and managerial support from Sponsor Zain Group, as well as a very attractive deferred payment arrangement in respect of its regulatory charges, which was announced recently.