MANAMA, (Reuters) – Saudi Arabia’s second biggest telecoms operator Mobily 7020.SE has signed a 1.2 billion Saudi riyal ($320 million) Islamic loan with five local banks to fund its expansion, it said on Tuesday.
The Saudi telecoms markets is still growing at a fast pace in particular in the broadband and data service segment and Mobily has rolled out a new optic fiber network this year.
Its third-quarter net profit rose 41 percent, helped by higher broadband revenues.
The company, also known as Etihad Etisalat, said in a statement the loan will have a tenure of 12 months, which can be extended by six months.
Emirates Telecommunications ETEL.AD owns a 27.4 percent stake in Mobily, its biggest shareholder.
Mobily in its statement did not disclose the financial terms of the loan, obtained from Samba Financial Group 1090.SE, National Commercial Bank, Riyad Bank, Saudi British Bank and Banque Saudi Fransi.