Global Financial Market Review

Zain KSA has signed a SAR 2.25 billion Murabaha facility with a consortium of local and regional banks to refinance its existing $600 million facility with Commercial and Industrial Bank China. 

Zain KSA disclosed that the facility was oversubscribed and is fully secured by a corporate guarantee from Mobile Telecommunications Company KSCP (Zain Group).

Prince Naif bin Sultan bin Mohammed, chairman of Zain KSA, said: “The closing of the Murabah Facility, which saw the transaction being oversubscribed, reflects the confidence of the financial institutions in the successful digital transformation strategy being executed by Zain KSA.”

Banque Saudi Fransi (BSF) acted as the documentation bank of the facility. Al Rajhi Banking and Investment Corporation, Arab National Bank, BSF, First Abu Dhabi Bank PJSC (Saudi Branch), and SAMBA Financial Group were the bookrunners and mandated lead arrangers for the facility. BSF was also appointed the investment agent on the transaction. 

Zain KSA raised its Q1 net profit to around SAR 129 million, compared to SAR 77 million for the same period of 2018, while total revenues rose to SAR 2.1 billion in the first quarter, a growth of 24 percent over the same period of 2018.

During the period, Zain KSA maintained Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of SAR 955 million in the first quarter, up 67 percent compared to SAR 571 million in the first quarter of 2018, reflecting an EBITDA margin of 46 percent.CIBC).