Zain KSA Secures $1.47 Billion Murabaha Facility to Fuel Growth
Riyadh – Zain Saudi Arabia has finalized a 5.5 billion riyal ($1.47 billion) Murabaha facility agreement with a consortium of local banks, the company announced today. The financing will be utilized to refinance existing debt and support the company’s operational and investment needs over the next five years.
This substantial financial commitment underscores confidence in Zain KSA’s financial stability and growth trajectory within Saudi Arabia’s rapidly evolving telecommunications market. The new facilities,effective September 30,2025,offer improved terms compared to previous arrangements and will play a crucial role in enabling Zain KSA to continue expanding its 5G network,enhancing customer experience,and driving digital transformation initiatives. The agreement impacts investors, customers, and the broader Saudi economy through continued infrastructure development and service innovation.
The financing package includes the immediate disbursement of 500 million riyals to cover existing city receivable financing facilities due on September 30, 2025. An additional 300 million riyals will be drawn down as needed to meet the company’s ongoing operational and investment requirements.
The remaining funds will be available over the five-year term of the facility, which includes a one-year grace period, with final repayment scheduled for September 30, 2030. The agreement is secured by a bond of order.
“These long-term facilities came after detailed and constructive discussions with banks, which reflects the confidence of the financial institutions in the company’s financial position, its credit worth and its ability to fulfill its financial obligations,” a company statement read.The improved trade conditions offered by the new agreement are expected to positively impact Zain KSA’s financial performance and strengthen its competitive position in the Saudi market.
