Saudi telecom operator Mobily announced today that it has concluded with a group of Saudi banks an SR7.9 billion ($2.1 billion) Murabaha facility to refinance a significant part of its current debt.

The banks include: National Commercial Bank, Banque Saudi Fransi, Samba Financial Group, Saudi British Bank, Riyad Bank and Al-Rajhi Bank, a statement said.

The new facility has seven years' maturity with two years' grace period and five years' repayment period.

The facility is unsecured and ranks pari-passu with all other existing facilities, the telecom operator said.
 
This facility will allow Mobily to re-profile its debt in a manner more consistent with its cash flow generation and release any refinancing risk over the medium and long term, it said.

"It reflects the increased confidence of the creditors in Mobily, its strong credit worthiness and its future prospects," it added. - TradeArabia News Service