Zain KSA Signs Agreement to Withdraw SR2.77 bln from Senior Murabaha Facility

Zain KSA signed and reached financial close to draw down SR2.77 billion from the Senior Murabaha Facility with a better commercial terms, with 3 years maturity underlined with a bullet payment at the maturity, for the purpose of repaying the Junior Murabaha Facility amounting to SR2.25 billion on April 28th 2022, before it’s due date on June 2022, and paying the 2022 instalment of the government loan amounting to SR525 million. This brings the outstanding balance of the Senior Murabaha Facility to SR6 billion.

The participating banks in this financing are Al Rajhi Banking and Investment Corporation, Banque Saudi Fransi, Arab National Bank, National Bank of Kuwait, Saudi National Bank, Bank AlJazira, and Gulf International Bank.

The Arab National Bank acted as the facility coordinator.

The financial impact cannot be calculated in the current period

Zain KSA has consolidated its Murabaha facilities under the Senior Murabaha Facility with better commercial terms that will allow the clearance of 2 major’s debt payment this year and will enhance the cash flow of Zain KSA.

This comes with reference to the Zain KSA’s announcement published on Tadawul website on 29 September 2020 in regard to the refinancing of the Senior Murabaha Facility, until 2025 for a total amount available up to SR6 Billion at better commercial terms.