Riyadh - Mubasher: Saudi Mobile Telecommunications Co. (Zain KSA) signed on Monday a long-term commercial loan facility agreement with the Industrial and Commercial Bank of China to replace an existing syndicated facility.
The agreement's value amounts to SAR 2.25 billion ($600 million), according to a bourse filing on Tuesday.
The deal is valid for two year starting from 29 August, 2016 to 15 August, 2018, with the possibility of extension for one more year till 8 August, 2019.
"The proceeds of this facility will be used to repay an existing facility, owing to the improving terms and reducing financing cost by around SAR 175 million over three years, by reducing the margin and converting from Saudi Riyals to US Dollars," the statement said.
The loan is unconditionally and irrevocably guaranteed by Zain KSA, as stated in the filing.
