Zain Saudi to use tower sale proceeds for debt settlement: CEO

Mobile Telecommunications Co. Saudi Arabia (Zain Saudi) will use the proceeds from selling telecom towers to settle its debts, cut Murabaha costs and accrued interest which together stand at SAR 5.3 billion, CEO Sultan Al Deghaither told Argaam on Thursday.

“The deal will enable the company to generate solid, positive returns,” Al Deghaither said, adding that the planned sale involves all the towers owned by the telecom operator.

More details will be disclosed about the leaseback value after obtaining a final approval from the Communications and Information Technology Commission (CITC) and other competent parties.

Under the deal, Zain Saudi will also build 1,500 towers over the next six years to maintain expansions across the Kingdom, Al Deghaither said.

“Zain is eyeing strategic investments, expansions, service quality improvement and a wider customer base among other future plans,” he concluded.

The telecom operator’s board of directors yesterday approved a bid submitted by IHS Holding Ltd. to sell and lease back 8,100 telecom towers for a total of SAR 2.43 billion, Argaam reported.