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Feb. 23
Thursday 23 Feb. 2012 07:44

Zain Saudi Arabia to says extend $2.6 bln facility

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JEDDAH, Saudi Arabia, Jan 28 (Reuters) - Zain Saudi Arabia said it has approval to extend the maturity of its 9.75 billion riyal ($2.6 billion) Islamic financing facility for an additional six months, in a bourse statement on Saturday.

'Saudi Arabia Zain announces that it has secured unanimous consent on January 25 from its Murabaha investors to extend the maturity of its approximately 9.75 billion riyal Murabaha facility...The facility will now mature on July 27, 2012,' it said.

Earlier this month, Zain Saudi Arabia posted an 11 percent decline in losses, bringing the firm's accumulated losses to about 9.6 billion riyals, around two-thirds of the company's 14 billion riyals of share capital.

Bourse rules say listed firms must reduce their capital if losses exceed 75 percent.

In October, Zain Saudi said it would ask shareholders to approve cutting its capital by 66 percent to alleviate losses.

(Reporting by Asma Alsharif) Keywords: ZAIN LOAN

(asma.alsharif@thomsonreuters.com)(+96626603848)(Reuters Messaging: asma.alsharif.reuters.com@reuters.net)

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