Etihad Etisalat (Mobily) announced that it secured a SAR 900 million ($240 million) from SABB bank as a medium term financing to support the capital expenditure of its -owned subsidiary Bayanat Al-Oula.
In a statement released on Wednesday, Mobily said the 66-month financing has been arranged on clean and unsecured basis on Bayanat's Balance sheet.
It also added that the new financing will assist the company to expand its WiMax network geographic coverage to 20 cities from nine currently.
Earlier this month, Mobily announced that it rescheduled a short-term, Islamic finance of SAR 1.5 billion it had obtained last year for the acquisition of Bayanat Al Oula in an agreements signed with SAMBA Financial Group, National Commercial Bank, Riyad Bank, and Saudi Arabian British Bank (SABB).
Mobily acquired Bayanat Al Oula in 2008 to diversify itself from a Mobile operator to a fully integrated telecom operator. Mobily and its data arm identified huge potentials in wholesale business on the back of Fiber Optic Network and it has been also investing heavily to capture the market share in Saudi Arabia through its data and Broadband services.
Mobily has been identified and awarded as the fastest growing 3G company by GSM association while its network has been described as the busiest network in the world with more than 42 terra bytes of data flowing on daily basis.
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