Mobile Telecommunications Co. of Saudi Arabia, known as Zain Saudi, hired four banks for a five-year $2.5 billion loan to refinance its Islamic facility that matures in July, according to two bankers familiar with the matter.
The company, 25 percent-owned by Mobile Telecommunications Co. of Kuwait, mandated Al Rajhi Bank, Banque Saudi Fransi, Arab National Bank and Standard Chartered Plc for the loan, the bankers said, who declined to be identified because the talks are private.
Zain Saudi will use the loan to refinance its existing $2.5 loan that matures on July 27, the bankers said.
A spokesman for Mobile Telecommunications Co. of Kuwait wasn’t immediately available for comment when contacted by Bloomberg News today.
Investors approved a six-month extension of the loan until July in January. Zain Saudi got the $2.5 billion Murabaha loan from eight banks in August 2009 to finance the company’s network expansion.