Mobily signs two agreements to acquire vendor financing
Mobily is set to further accelerate, modernize and expand its LTE-4G, 3G and 2G networks in the coming two years. Under this major initiative, Mobily signed on 26 February 2014 in Barcelona, two ECA financing agreements, with the Swedish Export Credits Guarantee Board (EKN) and the official Export Credit Agency of Finland (Finnvera), for a total of SAR 2.1 billion (SAR 1.05 billion with the Swedish Export Credits Guarantee Board, and SAR 1.05 billion with the official Export Credit Agency of Finland), without any guarantee from the company.
The purpose of this long term vendor financing, is to source telecommunications equipment from Ericsson, and Nokia Siemens Networks. The appointed banks are Credit Agricole, Deutsche Bank and Societe General as MLAs (mandated lead arrangers). The tenor of both facilities is 10 years, and shall be utilized over a period of 1.5 years. Both loans will be repaid in 17 semi-annual equal installments, and have been priced at a competitive fixed rate of 2.4% per annum. The financing is being arranged on Shariah-compliant basis.