Viva Kuwait signs $270m loan with NBK
Kuwait, June 18, 2013
Viva Kuwait, an affiliate of Saudi Telecom Co (STC), has signed a $270 million, five-year loan with National Bank of Kuwait (NBK) to finance the operator's network expansion, it said in a statement on Tuesday.
This borrowing includes a $70 million murabaha facility - a cost-plus-profit arrangement in Islamic finance - from NBK subsidiary Boubyan Bank. The tenor of the financing is five years.
Salman Al Badran, Viva chief executive officer, said: “This strategic partnership will help Viva to further expand and develop its operations by allowing additional investment in its network, services and people and most importantly, diversify the funding sources for its operations and expansions, while preserving its financial strength.”
Adel Al-Majed, Boubyan Bank vice chairman and chief executive officer, said: “Signing a financing agreement of this value reflects the ability and commitment of Kuwaiti banks to shoulder their responsibilities in financing the projects of leading companies which have clear strategy and strong operational activity.
“The current stage requires cooperation among local banks in order to support the expansion plans of companies in view of the government’s plans to stir development in Kuwait.”
Al-Majed added that this agreement comes along with the developments and the growth that Boubyan has achieved, whether on the level of products or services provided to retail or corporate customers, noting that the Bank’s 2010-2014 strategy aims at supporting and financing small and medium-size companies with high creditworthiness and ambitious plans.
Viva, which competes with Zain and Ooredoo (Qatar Telecom) subsidiary Wataniya, has built a 27 percent market share since launching services in 2008, according to Zain's first-quarter earnings statement.
STC owns 26 percent of Viva Kuwait. The affiliate has yet to list on the Kuwait bourse nearly five years after completing an initial public offer of shares. – Reuters & TradeArabia News Service
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