Zain KSA extends Murabaha facility for five years to mid-2018

Zain Saudi Arabia has announced that it has successfully extended the maturity date of its syndicated Murabaha facility for five years to July 31, 2018.The facility has been restructured as an amortising facility, 25 per cent of which will be due during years four and five of the life of the facility, with 75 per cent due at maturity. The company has partially repaid the facility, utilising a portion of its internal cash resources, and the current outstanding principal stands at US$2.3 billion (SAR8.63 billion).

The new facility arrangement will carry a decreased profit margin by around 18 per cent compared to the previous agreement, with the possibility for further reduction in line with the improving credit metrics.

This extension represents the final stage of the balance sheet reorganisation of the operator, following the US$325 million Export Credit Agency Facility in June 2012, the capital restructuring and rights issue in July 2012 and the US$600 million junior debt facility in June 2013.