Etihad Etisalat Co. announces the signing of SAR 7.6 billion refinancing Murabaha Facility Agreement with a group of Saudi Banks

tem

Explanation

Credit Facility type *

Murabaha 

Announcement Title *

Etihad Etisalat Co. announces the signing of SAR 7.6 billion refinancing Murabaha Facility Agreement with a group of Saudi Banks

Introduction

Etihad Etisalat Co. (Mobily) announces the singing of SAR 7.6 billion refinancing Murabaha Facility Agreement with a group of Saudi Banks

Date of receiving Credit Facility *

06-04-1441 corresponding to  03-12-2019

Creditor *

A group of Saudi banks: Riyad Bank (Agent), Arab National Bank, Banque Saudi Fransi, Saudi British Bank, SAMBA Financial Group

Credit Facility value *

SAR 7.6 billion 

Credit Facility duration *

7 years  

Guarantees provided for credit facility *

Un-secured

Reason for Credit Facility *

To replace the existing syndicate financing  and to reduce the cost of financing with better financing Terms and Conditions

Related Parties *

Etihad Etisalat Co. Mobily’s board member Eng. Abdullah Al-Issa chairs Riyadh Bank Board. Also, Mobily board member Eng. Motaz Al Azzawi is a board member of Riyadh Bank.

Additional Information

The refinancing agreement will significantly reduce the cost of debt for the company over the coming few years and it is part of the company’s management continues efforts to improve liquidity and improve terms and conditions. 

The company’s achievements enabled Mobily to obtain this new refinancing Murabaha facility with lower cost of debt and more favorable terms and condition which reflects the continuous improvement of the company credit rating and confirms the trust the lenders have in Mobily’s capabilities and the recognition of its achievements.