Zain Saudi Secures Delay in Repayment of $3 Billion of Loans
Published on: 30th Apr 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Saudi Arabia's Zain has secured an extension on the maturity of USD3 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 which was originally due to be repaid in 2011 but has been repeatedly extended.
The company also secured an extension on a separate USD600 million loan that was due to be repaid this week.
The company said in a stock-market statement that it will use the new extension to try and secure fresh loans with a 5-year maturity.
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.