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FINANCIAL NEWS
Samba, commercial bank to fund VIVA Bahrain
03 Feb 2011
(MENAFN) The VP Finance of Saudi Telecom Co. (STC), Ameen Al-Shiddi, said that the company signed a deal with Saudi-based Samba Financial Group along with a commercial bank, to fund Shariah-complaint financing facility, the project of STC’s entirely owned subsidiary, VIVA Bahrain, with a total of $280 million over a 7-year period, reported Arab News.
Al-Shiddi said that Samba Financial Group and the commercial bank are considered the two most reputable financial institutions in the Gulf.
Al-Shiddi said that $100 million are going to be provided by the bank while Samba would pay the rest $180 million. The payment is going to be mostly in US dollars due to its low cost of financing for the American currency.
Al-Shiddi added that STC plans on increasing its international operations as an attempt to accomplish its goal of strengthening the group’s overall profitability.
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