Mobily, SNB sign SR 4.8 bln Murabaha agreement

The giant telecom Saudi company Mobily, and the Saudi National Bank (SNB) have inked an SR4.8 billion ($1.28 billion) Murabaha financing deal to partially refinance Etihad Etisalat Co.’s debt.

Mobily, stated in a disclosure to Tadawul that no mortgages or financial guarantees are part of the seven-year agreement.

“This agreement, characterised by favourable terms and competitive interest rates, is for working capital financing, in addition to an additional medium-term Murabaha financing to facilitate the partial refinancing of existing debt obligations,” said Mobily in the statement.

Mobily plans to partially refinance its current SR 5.33 billion syndicated Murabaha with the help of SR 3.68 billion from the financing agreement.

Moreover, the agreement is in line with Mobily’s long-term financial and capital restructuring strategy goals, the statement continued.

The business disclosed that the transaction does not involve any related parties.

Mobily revealed in October 2023 that its net profit for the first nine months of the previous year increased by 41 per cent to reach SR1.48 billion, compared to the same period in 2021.