Mobile Telecommunication Company Saudi Arabia (Zain KSA) has obtained an Islamic financing facility worth SAR 5.5 billion ($1.47 billion) from a consortium of leading local and regional banks, including Al Rajhi Bank, Arab National Bank, Saudi National Bank, Riyad Bank, and Gulf International Bank. The company announced the deal in a statement to the Saudi bourse on Monday.
The proceeds will primarily be used to refinance SAR 4.7 billion in existing Murabaha loans and a SAR 500 million receivable discounting facility, both of which were due to mature on September 30, 2025. An additional SAR 300 million will be allocated to cover operational and investment needs.
The new facility, structured on “flexible and favourable” commercial terms, carries a five-year maturity with a one-year grace period, setting the final repayment date for September 30, 2030. The loan is secured against a promissory note, according to the company’s disclosure.
This financing agreement provides Zain KSA with enhanced balance sheet flexibility and additional resources to support its operational expansion and investment plans in the Saudi telecom market.
