Zain

Landmark US$ 2.5 Billion Murabaha financing facility to support Zain Saudi Arabia's future growth

·        One of the largest Islamic financing deals of 2009
·        Resounding vote of confidence from the financial community as representatives of eight leading regional and international banks attend signing ceremony
 
11 August 2009, Riyadh / Bahrain
 
Zain Saudi Arabia (“Zain KSA”) today held the closing for a US$ 2.5 billion Murabaha financing facility. The funds will be used to repay its existing Murabaha, facilitating the mobile telecom operation’s ongoing network expansion and future growth. The term of the facility is two years with options of extending for a further twelve months. Al Rajhi Capital, Banque Saudi Fransi and Calyon acted as Financial Advisors, with a total of eight regional and international financial institutions participating in what is one of the largest Islamic financings this year.
 
Al Rajhi Bank, Banque Saudi Fransi and Calyon acted as Initial Mandated Lead Arrangers and Bookrunners, while National Bank of Kuwait (NBK) and Arab National Bank (ANB) acting as Senior Mandated Lead Arrangers and Bookrunners.  Saudi British Bank (SABB) acted as the Senior Mandated Lead Arranger with Gulf Bank and Standard Bank acting as Mandated Lead Arrangers.
 
“This is an enormous vote of confidence by the International financial community in Zain KSA’s performance to date and its future expansion plans in the region’s largest economy,” said Dr Saad Al Barrak, CEO of Zain Saudi Arabia and Zain Group. “The growth and success of this mobile operation is critical to Zain Group’s 2011 ambition of being a top ten global mobile telecommunications company. The Murabaha facility, which comes at a vital stage of Zain KSA’s business growth cycle, will play an important role in achieving this goal.”
 
In less than 12 months, and despite the very competitive nature of the mobile telecom market in the Kingdom, Zain Saudi Arabia has acquired 4 million customers. For the first half of 2009, Zain KSA reported gross revenues of US$ 342 million with Average Revenue Per User Per Month (ARPU) of US$ 19. Zain KSA’s marketing and customer acquisition strategy paid off in the first half of 2009, capturing over 50% of total net additions in the mobile telecom market. The company’s state-of-the-art network covers 65% of the populated areas – the remaining areas are now covered through national roaming agreements – with 85% targeted by the end of 2009.
 
“Despite the challenging financial environment and a shortage of liquidity, the successful closing of this Murabaha is a testament to Zain’s strong relationships with the banking community, the Group’s financial health and overall confidence in the Kingdom of Saudi Arabia and beyond,”  said Mr Sam Deeb, Chief Financial Officer of Zain Group. “This is an excellent addition to Zain Group’s enviable track record of successfully raising over US$ 25 billion over the last five years.”       
 
Zain KSA is a key member of ‘One Network’, Zain’s award-winning borderless mobile platform that allows Zain’s travelling customers in 21 countries to receive incoming calls from their home country for free and making outgoing calls and sms at local rates. The benefits of “One Network’ are especially evident during the holy month of Ramadan when millions of Zain customers from neighboring Arab nations, not to mention African countries such as Sudan and Nigeria, visit the Kingdom.
 
 
About Zain
Zain is a leading telecommunications operator across the Middle East and Africa providing mobile voice and data services to 69.5 million active customers as at 30 June 2009. In terms of country footprint, Zain is the 3rd largest mobile operator in the world with a commercial presence in 24 countries.
Zain operates in the following countries: Bahrain, Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Iraq, Jordan, Kenya, Kuwait, Malawi, Madagascar, Niger, Nigeria, Palestine (currently known as Paltel Group), Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda and Zambia. In Lebanon, the company manages ‘mtc-touch’ on behalf of the government. In Morocco, Zain owns 31% of Wana Telecom through a joint venture.
Zain offers innovative services in its markets such as ‘One Network’, the world’s first borderless mobile telecommunications network enabling customers when abroad to receive calls and sms without charge and to make voice and data calls at local rates throughout 21 countries in Africa and the Middle East. This service allows a customer to top up airtime in one’s home country or from more than 2,000,000 outlets within Zain’s One Network footprint.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). Zain is listed in the Financial Times’ Global 500 Index which ranks the world’s largest companies based on market capitalization (http://www.ft.com/reports/ft5002008). Zain aims to become one of the top ten mobile operators in the world by end of the year 2011. For more, please visit www.zain.com  or email info@zain.com
 
About Zain Saudi Arabia
Zain Saudi Arabia commenced commercial operations in August 2008 and now serves approximately 4 million active customers. The company offers the latest in mobile technologies and currently covers 65% of the Kingdom’s populated areas through its own network with national roaming agreements covering the remaining areas. The company is listed on the Saudi (Tadawul) Stock Exchange (stock ticker: ZAIN). For more visit www.sa.zain.com

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