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Zain says loan repayment delay due to Zain-Saudi subscription  Join our daily free Newsletter

MENAFN - Kuwait News Agency (KUNA) - 29/07/2012

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(MENAFN - Kuwait News Agency (KUNA)) Zain Group said here Saturday the postponed repayment of its USD-2.6 billion loan to banks is primarily due to the delayed subscription of Zain Saudi.

The subscription was successfully completed on July 19 by a covering ration of 105 percent, Zain said in a release, quoting the CEO of the company for commercial affairs Hisham Akbar.

Akbar, who is also a Zain Saudi board member, reiterated the company's full commitment to the due loan repayment, noting that the delay in subscription forced the group to ask for a two-month grace from banks.

In this context, he pointed to high understanding and continuing coordination and cooperation between the group and banks.

Zain has boosted its share in Zain Saudi up to roughly 37 percent following the rights issue, which followed the group's wide-scale capital restructuring.

The extraordinary general assembly of Zain Saudi had finally agreed to cut its capital from 14 billion Saudi riyals to 4.8 billion riyals and then 6 billion riyals through the rights issue.

 






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