Mobily inks SAR 7.9 bln refinance deal with banks

Saudi Arabia’s Etihad Etisalat Co. (Mobily) has signed a SAR 7.9 billion Murabaha facility agreement with the National Commercial Bank (NCB), Banque Saudi Fransi (BSF), Samba Financial Group, Saudi British Bank (SABB), Riyad Bank, and Al-Rajhi Bank.

The unsecured seven-year loan has a two-year grace period and will be repaid in five years, the company said in a statement to Tadawul on Wednesday.

The Murabaha facility will allow Mobily to re-profile its existing debt.

Mobily narrowed its net loss by 81 percent year-on-year (YoY) to SAR 202.9 million for fiscal year 2016, due to lower G&A expenses mainly on booking SAR 800 million in debt provisions for Zain Saudi in the previous period, in addition to lower selling and marketing expenses.