Etihad Etisalat Co announces obtaining a vendor financing Sharia compliant in the amount of SAR750m
Mobily signed on 26 June, 2014 a long term vendor financing agreement with Canada export credit agency or Export Development Canada (EDC) for $200 million equivalent to Saudi Riyal 750 million (with no corporate guarantee).
The purpose of the Shariah-compliant financing is to acquire telecommunications equipment from Alcatel-Lucent to upgrade/enhance the network. The appointed banks are Credit Agricole, Societe Generale & Bank of Tokyo Mitsubishi as MLAs (mandated lead arrangers).
The total tenor of the facilities is 10.5 years, and will be utilized over a period of 2 years. The loan will be repaid in 17 semi-annual equal installments, and has been priced at a fixed rate of 2.52% per annum with a 3% upfront premium.