Riyadh – Mubasher: Bank of America Merrill Lynch said it believes 2016 could represent a significant year of de-risking for Zain KSA as it explores various channels to lower leverage in 2016.
“Whilst management have various channels to achieve this, we believe the sell down of its Saudi tower portfolio could be at the heart. According to TowerXchange, Zain KSA could sell its portfolio of c.5,000 towers in 2016, which at recent market prices (US$100k-US$200K/tower) could deliver SAR1.9bn to SAR4bn in proceeds, reducing gearing from 7.3x EBITDA (YE 2016) potentially down to a more palatable 5.4x EBITDA,” said BofA.
The bank expects Zain KSA’s revenues to rise to SAR 7.35 billion this year, from SAR 6.74 billion in 2015, then to SAR 8.06 billion and SAR 9.06 billion in 2017 and 2018 respectively.
