Saudi Arabia’s Mobily has signed export credit agency agreements worth 2.1 billion riyals ($560 million) to buy equipment from Nokia Siemens Networks and Ericsson, the telecom operator said in a bourse filing.
The agreements, 1.05 billion riyals with the Swedish Export Credits Guarantee Board and the remainder with Export Credit Agency of Finland, have a tenor of 10 years and will be used over an 18-month period, Mobily said.
The company, also known as Etihad Etisalat and an affiliate of the United Arab Emirates’ Etisalat, will repay the loans in 17 semi-annual equal installments. The loans carry a fixed interest rate of 2.4 per cent per annum.
Credit Agricole, Deutsche Bank and Societe Generale were lead arrangers for the loans.