Zain KSA, Al Rajhi Bank ink SAR 1.6B deal to finance supply chains, receivables

14/05/2024 Argaam
Logo ofMobile Telecommunication Company Saudi Arabia (Zain KSA)

Logo of Mobile Telecommunication Company Saudi Arabia (Zain KSA)

Mobile Telecommunication Co. Saudi Arabia (Zain KSA) signed a vendor finance agreement of up to SAR 1.12 billion and receivables discounting facility of up to SAR 500 million with Al Rajhi Bank, the telco said in a statement to Tadawul today, May 14.

 

The aim is to enhance Zain KSA’s network infrastructure and free cash flow to enable improving its digital services for individual and business customers, the statement noted.

 

The vendor finance agreement has a duration of 10 years, while the receivables facility has a term of one year renewable.

 

The financing for supply chains aims to improve network infrastructure, while that for receivables aims to bolster the company's working capital, Zain KSA stated.

 

This facility will augment working capital, consolidate net asset value, and boost operating profits throughout the contract period.

 

There are no related parties to the agreement, the statement added.

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