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Zain KSA negotiates seven-year deferment of dues to the Ministry of Finance

Wednesday 24 June 2015

Zain KSA negotiates seven-year deferment of dues to the Ministry of Finance

Riyadh – 4 June 2013

Zain KSA has signed an agreement with the Kingdom’s Ministry of Finance agreeing to postpone payments of the government’s entitlements due from the Company for the next seven years. These payments are estimated to add up to SR800 million per year, representing a total amount of SR5.6 billion for the entire period. It has been agreed that the postponed installments will be converted into a commercial loan, the first installment due on 1 June 2021.

Mr. Fahd bin Ibrahim Al Dughaither, Zain KSA Chairman, stated that, “the agreement signed with the Ministry of Finance will assist Zain KSA’s liquidity position as it would reduce part of the financial obligations the company faces. This will in turn result in the reduction of financing costs and accordingly allow the company to use part of that liquidity to continue the expansion and development of its network.”

Al Dughaither reiterated that Zain KSA with the support of its main shareholder Zain Group, is working effortlessly to bolster its operations in order to further develop the services offered to customers, and keep up with the rapid developments occurring in the telecommunications sector. He expressed his confidence in the company’s future prospects and said he is confident it will continue to enhance its financial performance going forward.  ENDS