Zain KSA announced that it has agreed with its financing banks to extend its SR 9 billion ($ 2.4 billion) murabaha facility for an additional period of two months. According to this agreement, the new maturity date of the murabaha facility will be Nov. 28. The deal was concluded after the company’s success in the prepayment of SR 750 million ($ 200 million) on Aug. 27.
The company explained that this extension is a significant endorsement by the murabaha facility financers of Zain KSA’s new business plan and places the company in a better cash-flow position to meet its financial and operational obligations in the near future.
Zain KSA confirmed that it has adopted a clear strategy of operations for the upcoming period, as well as the strategy has gained a strong support from its parent company, Zain Group.
This additional grace period is designed to allow Zain KSA and its banks the opportunity to finalize the implementation of an optimal, long-term funding structure for the business to reflect its improved credit profile following the success of the Company’s capital restructuring.