Mobily signs $ 2.875bn Islamic financing deal


Banks include Samba, Banque Saudi Fransi with Calyon, Saudi Hollandi Bank with ABN Amro, National Commercial Bank and National Bank of Abu Dhabi.



The loan will be devoted to pay the short-term debt and to finance operations and infrastructure expansion.



The signing ceremony held here was attended by Etihad Etisalat (Mobily) Chairman Abdulaziz Alseghyer, Mobily CEO Khalid Al-Kaf, CEOs of banks and other senior officials.



Mobily has outstandingly been able to get the lowest rate of Islamic financing (Morabaha) ever granted to a telecom company in the Middle East and Africa.



Despite the fact that Mobily is only 2 years old, local and international banks have been quickly responding to the company’s business plan presented to them. Analysts justify this achievement based on the support of its major stakeholder, Etisalat of UAE, as well as the continuous success of Mobily as the fastest growing mobile operator in the region.



Mobily has acquired more than six million subscribers in less than two years of operation and achieved a revenue of SR6.1 billion by the end of 2006, with a profit of SR700 million within 18 months of operations.


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