Mobily refinances debt to the tune of US$2.67 billion

Saudi Arabia’s Mobily has signed a SAR10 billion (US$2.67 billion) refinancing agreement with seven local banks to refinance three of its existing long, medium and short term loans.

The loans being refinanced, which are covered 3.5 times, are the remainders of a SAR10.781 billion long term loan negotiated by the company in 2007, a SAR1.5 billion medium term loan negotiated in 2009 and a SAR1.2 billion short term loan negotiated in 2010.

The refinancing arrangement gives Mobily access to banking facilities of up to SAR 10 billion, including credit facilities, payable in four tranches over five to seven years.

The telco said in a statement to the stock market that it has chosen to take the action now rather than in the future, as Mobily was able to negotiate more favourable repayment rates with the banks.