Saudi telco Etihad Etisalat signs 7.6 bln riyals in Islamic refinancing

Saudi telecommunications company Etihad Etisalat (Mobily) has signed 7.6 billion riyals ($2.03 billion) in Islamic refinancing to replace and reduce the cost of its existing syndicate financing. 

The murabahah facility is with five Saudi banks: Riyad Bank, Arab National Bank, Banque Saudi Fransi, Saudi British Bank, and SAMBA Financial Group, the company said in a filing with the Saudi stock exchange on Suday (Dec 15).

Mobily said the seven-year unsecured refinancing will significantly reduce its cost of debt over the coming few years.

Mobily in November signed a 3 billion riyals financing agreement with Alinma Bank, also to replace existing financing, and for what it said at the time was for "general corporate purpose including capital expenditure".

The telco reported net profit of 51.06 million riyals for the third quarter ending September 30, supported by increasing revenue mainly attributed to a growing subscriber base. 

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