Etihad Etisalat Co, Saudi Arabia’s second-largest mobile-phone company known as Mobily, reached an Islamic finance agreement for SR1.2bn ($320m) that the company may use to expand its network.
The credit facility from Samba Financial Group, National Commercial Bank, Bank of Riyad, Saudi British Bank and Banque Saudi Fransi is valid for 12 months, the Riyadh-based company said in a statement on the Saudi bourse website on Tuesday.
The facility can be renewed for six months, Mobily said.The short-term credit “highlights the company’s strong financial position,” Nader Nuwayhid, Mobily’s Director of Investor Relations, said by phone on Tuesday. “The company’s net debt to EBIDTA ratio dropped to 1.14 at the end of the third quarter.”
Mobily is tapping financing to expand its phone networks and broadband internet infrastructure as demand for telecommunications rises in Saudi Arabia.