Zain Saudi postpones $2.6bn loan maturity
Jeddah, September 29, 2012
Indebted telecom operator Zain Saudi has for a second time extended the maturity of a SR9.75 billion ($2.6 billion) loan by two months, it said in a bourse statement on Saturday.
"The firm announces that on September 26 it has received approval from lenders to extend the maturity date for the joint Murabaha by two additional months, changing the maturity date to November 28," the statement said.
The loan was initially due in July but was extended to September 27.
The firm said it had already paid back part of the loan, SR750 million on August 27 and is in the process of finalising a long-term finance agreement to replace its current loan.
Saudi Arabia's third telecom company by market share has been struggling with losses and launched a $1.6 billion rights issue in July to boost its balance sheet and help it fight back against rivals.
The rights issue was oversubscribed after Kuwait's Zain raised its stake in Zain Saudi following a weak response from other shareholders.
Zain Saudi, in which Kuwait's Zain holds 37 per cent, has yet to make a quarterly net profit nearly four years after launching services.
Zain Saudi has struggled to compete against Saudi Telecom Company, the Gulf's biggest operator, and Etihad Etisalat. Its share of the kingdom's mobile market fell to 12 per cent last year from 18 per cent in 2009.
The company paid $6.1 billion for a 25-year telecom licence and racked up SR10.1 billion in accumulated losses by March 31, forcing it to cut its capital prior to the rights issue in July.-Reuters
More IT & Telecommunications Stories
- Scope ME named distributor for InfoWatch
- Nawras quadruples 3G+ mobile services
- Menatelecom expands bill paying network
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite
- Batelco announces new board
- Batelco offers improved broadband
- You don't own phone numbers, warns TRA
- Tech giants back top Qatar ICT event
- Du to provide wifi access in public areas
- Zain finalises $800m, five-year loan facility
- Ooredoo Q4 net profit falls 36pc to $140m
- Mobily, Etisalat team up for LTE roaming
- Batelco approves $84m dividends for 2013
- Etisalat Q4 profit rises 70pc to $394m
- Kenya telecom firm to join Etisalat SmartHub
- Aruba appoints new sales director
- Du enters $1.17 billion financing deals
- VIVA extends 4G LTE offer
- Batelco to update students with latest technologies
- Etisalat SmartHub seals IPX agreement
- Etisalat picks Alcatel for LTE network expansion
- Boeing, QCRI host machine learning forum
- Mobily provides 4G LTE international roaming
- Viva Kuwait, Huawei to set up innovation centre
- Etisalat, Airtel deal to boost network services
- Batelco offers 4G LTE backup solution