Zain Saudi receives further extensions to loan repayments

Zain Saudi Arabia has secured an extension on the maturity of US$3 billion worth of loans, although for just another five weeks.

The extension applies to two tranches of debt – the largest being a US$2.4 billion Islamic loan that was originally due to be repaid in 2011 but has been repeatedly extended.

The company also secured an extension on a separate US$600 million loan that was due to be repaid this week.

Zain Saudi Arabia said in a stock-market statement that it will use the new extension to try and secure fresh loans with a five-year maturity.

Zain Group owns a 37 per cent stake in the Saudi operator.