Saudi Arabia’s Etihad Etisalat (Mobily), a prominent telecommunications provider, has secured a significant Murabaha financing agreement with the Saudi National Bank (SNB) valued at 4.8 billion riyals (equivalent to approximately $1.3 billion).
The transaction, involving an affiliate of the UAE’s Etisalat, is designed to utilize 3.685 billion riyals from the total amount to partially refinance its existing debt, which currently stands at 5.333 billion riyals.
Mobily has indicated that the remaining funds will be allocated towards working capital to support its ongoing operations. This strategic financial move was disclosed in a recent statement to the Saudi Stock Exchange (Tadawul).
The financing agreement, which spans seven years, is particularly notable for not requiring any mortgages or financial guarantees, a detail that underscores the robust financial standing and trust that Mobily has in the market. However, specifics regarding the terms of the deal have not been publicly shared.