Mobily signs SAR 4.8B Murabaha agreement with SNB

Logo of Etihad Etisalat Co. (Mobily)

Etihad Etisalat Co. (Mobily) signed on Jan. 17 a Murabaha financing agreement with Saudi National Bank (SNB) for SAR 4.8 billion.

The seven-year agreement does not include any mortgages or financial guarantees, the telco said in a statement to Tadawul.

Characterized by favorable terms and competitive interest rates, the agreement is to finance the working capital, along with an additional medium-term Murabaha financing for partial refinancing of the company's existing debt obligations.

Mobily will use SAR 3.7 billion from the financing agreement to facilitate partial refinancing of its existing syndicated Murabaha of SAR 5.3 billion.

The financing aligns with Mobily's long-term financial and capital restructuring strategy objectives, the statement noted.

“The company’s financial and operational achievements along with its operational efficiency over the past years are key drivers to achieve an investment-grade credit rating and create an added value to its shareholders,” the statement said.

“This agreement signifies the trust of the financial institutions’ partners in Mobily’s capabilities and strategies,” it added.

There are no related parties to the agreement, Mobily said.