TAWAL Raises $1.42 Billion to Purchase United Group's European Towers
28 August 2023•
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According to its parent company Saudi Telecom Company (STC), Saudi Arabia's TAWAL secured $1.42 billion in Islamic financing to cover the cost of acquiring the mobile telecommunications infrastructure segment of United Group in Bulgaria, Croatia, and Slovenia. The announcement was made on Sunday (27/8).
In its initial foray into the European telecoms market, TAWAL entered an agreement in April to acquire tower infrastructure from United Group for 1.22 billion euros ($1.34 billion).
In a regulatory filing, STC revealed that the deal was funded through a Shariah-compliant bank loan and received the necessary approvals, concluding on August 24.
The kingdom's largest lender, Saudi National Bank, contributed $1.02 billion, of which $300 million was provided as a bridge loan.
Additionally, Dubai Islamic Bank and First Abu Dhabi Bank contributed $250 million and $150 million, respectively.
STC also stated that the financial impact of the transaction will be reflected in its third-quarter earnings.
Source: Reuters
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