Lenders agree to delay Zain Saudi’s dues to November

30 Sep 2012

(MENAFN) Saudi No.3 telecoms operator Zain Saudi has extended the maturity of a USD2.6 billion loan for the second time, by two months, Reuters reported.

The company said in a statement that its lenders agreed to delay its dues for the joint Murabaha loan to November 28. The loan was initially due in July but was extended to September 27.

The firm said it had already repaid USD199.7 million of the total sum on August 27 and is in the process of finalising a long-term finance agreement to replace its current loan.

The company has been struggling with losses since it has launched operations. It lunched a USD1.6 billion rights issue in July to boost its balance sheet and help it fight back against larger rivals Mobily and STC.

The rights issue was oversubscribed after Kuwait’s Zain raised its stake in Zain Saudi following a weak response from other shareholders.

The company paid USD6.1 billion for a 25-year telecom licence in 2009, and piled USD2.7 billion losses by March 31, forcing it to cut its capital prior to the rights issue in July.

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