(Updates with terms of refinancing in second paragraph.)
Oct. 26 (Bloomberg) -- Etihad Etisalat Co., Saudi Arabia’s second-largest phone company, also known as Mobily, said it was in the process of concluding an Islamic refinance agreement with Saudi banks valued at 10 billion riyals ($2.7 billion).
Mobily will refinance three loans into one long-term facility made up of four tranches, the Riyadh-based company said in a statement to the Saudi bourse today. Mobily said it agreed a competitive Murabaha rate of Saibor, or Saudi Arabia Interbank Offered Rate, plus 70 basis points for two tranches, and Saibor plus 65 basis points for the other two tranches.
Mobily competes with state-run Saudi Telecom Co. and Zain Saudi Arabia, a unit of Kuwait’s Zain, for mobile-phone and Internet customers in the Arab world’s largest economy, home to 27 million people. Mobily’s shares were unchanged at 51.5 riyals in Riyadh today, giving the company a market value of 36 billion riyals. The shares have dropped 6.8 percent this year.
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