Zain Saudi Secures Delay in Repayment of $3 Billion of Loans

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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.

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Tags: zain  Saudi Arabia 

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