Mobily Secures SAR 4.8 Billion Murabaha Financing Deal with Saudi National Bank
Saudi Arabia's prominent telecommunications operator, Etihad Etisalat (Mobily), has inked a Murabaha financing agreement with the Saudi National Bank (SNB), totaling 4.8 billion riyals ($1.3 billion).
As part of this strategic move, Mobily, which operates under the umbrella of the UAE’s Etisalat, plans to allocate SAR 3.685 billion to partially address existing debt obligations amounting to SAR 5.333 billion.
The remainder of the financing, according to Mobily's announcement on the Saudi Stock Exchange (Tadawul) on Thursday, will be earmarked for enhancing working capital.
The seven-year financing arrangement notably excludes any mortgages or financial guarantees.
Although specific terms of the deal were not disclosed by the telecom company, the agreement signifies a significant financial move for Mobily as it seeks to optimize its capital structure and strengthen its financial position in the market.
Brinda Darasha / Zawya
