Zain Saudi Arabia Extends Loan Repayment Date
Published on: 30th Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Zain's Saudi Arabian subsidiary has again deferred repayment on a USD2.4 billion loan by a further four weeks the company announced.
In a statement to the Saudi stock exchange, the company delayed repayment of the murabaha facility until the 27th February. It had been due to be repaid last year, but the company has struggled to raise the funds to rollover the debt.
The company also warned that the new deadline may be extended again if it cannot secure an agreement with lenders. The company has already paid back USD750 million of the debt, and last year raised USD1.6 billion in a rights issue from shareholders.
The company has struggled to compete in the local market ever since it paid USD6.1 billion for an operating license back in August 2008.
Zain owns a 37% stake in the company and failed in an attempt in 2011 to sell its holding to Bahrain's Batelco.