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Zain Saudi eyes $600m expansion loan
01 February 2010
Zain is seeking a loan from international banks to help fund its expansion in Saudi Arabia
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Zain
Saudi Arabia
Islamic finance
Comment: Zain has been a fast-growing company but its move into Saudi Arabia has been somewhat more difficult than some of its investments. But Saudi Arabia is a good market where there is potential for a competitive operator.
Kuwait’s telecoms operator, Zain, is looking to obtain a loan of between $500 million and $600 million for its Saudi operation. The mobile company is in talks with foreign lenders to help finance costs for expanding its network in Saudi Arabia.
Zain is approaching international banks for the funding instead of Gulf lenders owing to a strict lending environment in the region. The company has a 25% stake in Mobile Telecommunications Saudi Arabia (Zain Saudi).
Saad Al Barrak, CEO of Zain, said the group’s Saudi division is planning to pay back a $500 million loan by April this year. The unit was in talks with lenders after it missed some commitments in 2009 on a two-year $2.5 billion Islamic loan.
Zain was founded in 1983 in Kuwait as Mobile Telecommunications Company, which was rebranded to Zain in 2007. GTB