Saudi Telecom Said to Offer Loan to Settle Turkey Debt Issue

Saudi Telecom Co. offered a loan of about $160 million to a subsidiary that missed a repayment on $4.75 billion of debt last year, according to people familiar with the matter.

The funds would allow Otas, a special purpose vehicle formally known as Ojer Telekomunikasyon AS that owns 55 percent of Turk Telekomunikasyon AS, to cover an interest payment that was due in September, the people said, asking not to be identified as the information is private. Otas missed a $290 million repayment -- including principal -- as a slump in the lira led to a decline in the dollar value of the dividends that it receives from Turk Telekom, a person familiar said in October.