Zain KSA signs SAR 5.5B Murabaha facility agreement with banks

Mobile Telecommunication Company Saudi Arabia (Zain KSA) signed a Murabaha facility agreement valued at SAR 5.5 billion with Al Rajhi Bank, Arab National Bank (ANB), Saudi National Bank (SNB), Riyad Bank, and Gulf International Bank (GIB).

In a statement to Tadawul, the company said the facilities will be used to repay existing Murabaha loans of SAR 4.7 billion and accounts receivable financing of SAR 500 million, both maturing on Sept. 30, while the remaining SAR 300 million will support operational and investment needs.

Zain KSA noted that the new facilities, which take effect on Sept. 30, offer more favorable commercial terms.

The financing carries a five-year tenor, including a one-year grace period, with repayment due by Sept. 30, 2030. The agreement is secured by a promissory note.

The long-term facilities followed detailed discussions with participating banks, underscoring lenders’ confidence in the company’s strong financial position, credit profile, and ability to meet obligations, the statement added.