Executives of Mobily Export Development Canada sign the agreement.

Mobily signed on June 26 a long-term vendor financing agreement with Canada export credit agency or Export Development Canada (EDC) for $200 million (SR750 million) with no corporate guarantee.

The purpose of the Shariah-compliant financing is to acquire telecommunications equipment from Alcatel-Lucent to upgrade/enhance the network.

The appointed banks are Credit Agricole, Societe Generale & Bank of Tokyo Mitsubishi as MLAs (mandated lead arrangers). The total tenor of the facilities is 10.5 years, and will be utilized over a period of 2 years. The loan will be repaid in 17 semi-annual equal installments, and has been priced at a fixed rate of 2.52 percent per annum with a 3 percent upfront premium.