Zain KSA defers payment on Murabaha loan further

Zain Saudi Arabia has deferred repayment on a US$2.4 billion loan by a further four weeks, the company announced.

In a statement to the Saudi stock exchange, the company delayed repayment of the Murabaha facility until February 27. It had been due to be repaid last year, but the company has struggled to raise the funds to rollover the debt.

The company also warned that the new deadline may be extended again if it cannot secure an agreement with lenders. The company has already paid back US$750 million of the debt, and last year raised US$1.6 billion in a rights issue from shareholders.

Zain KSA has found operating in the local market particularly challenging since paying US$6.1 billion for an operating licence in August 2008.

Zain Group owns a 37 per cent stake in the Zain KSA and failed in an attempt in 2011 to sell its holding to Batelco.