Saudi telco Mobily in $560m deal to buy gear from Ericsson, NSN

February 27, 2014 - 12:07:51 pm

RIYADH: Saudi Arabia's Mobily  has signed export credit agency agreements worth 2.1 billion riyals or $560 million to buy equipment from Nokia Siemens Networks and Ericsson, the telecom operator said in a bourse filing. 

The agreements, 1.05 billion riyals with the Swedish Export Credits Guarantee Board and the remainder with Export Credit Agency of Finland, have a tenor of 10 years and will be used over an 18-month period, Mobily said. 

The company, also known as Etihad Etisalat and an affiliate of the United Arab Emirates' Etisalat, will repay the loans in 17 semi-annual equal installments. 

The loans carry a fixed interest rate of 2.4 percent per annum.

Credit Agricole, Deutsche Bank and Societe Generale were lead arrangers for the loans. (Reuters)