In a significant financial move, Saudi Arabia’s giant telecom company, Mobily, and the Saudi National Bank (SNB) have officially sealed a Murabaha financing deal worth SR4.8 billion ($1.28 billion). The seven-year agreement is aimed at partially refinancing the debt of Etihad Etisalat Co. (Mobily).
Mobily, in a disclosure to Tadawul, emphasized that the financing deal, devoid of mortgages or financial guarantees, carries favorable terms and competitive interest rates. The funds secured through this agreement will serve as working capital financing, along with medium-term Murabaha financing, facilitating the partial refinancing of Mobily’s existing debt obligations.
The telecom company plans to utilize SR3.68 billion from the financing agreement to partially refinance its current SR5.33 billion syndicated Murabaha. This strategic move aligns with Mobily’s long-term financial and capital restructuring strategy goals, according to the official statement.
Importantly, Mobily clarified that the transaction involves no related parties, ensuring transparency and adherence to sound financial practices.
Notably, Mobily reported a 41% increase in net profit for the first nine months of the previous year, reaching SR1.48 billion, compared to the same period in 2021, as disclosed in October 2023.
