Zain Saudi Secures Delay in Repayment of $3 Billion of Loans
Published on: 30th Apr 2013
By: Ian Mansfield
Saudi Arabia's Zain has secured an extension on the maturity of US$3 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 US$600 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 US$6.1 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.
Previous Story << Huawei to Invest $150 Million In Bangalore R&D Facility