Telecommunications Towers Company (TAWAL), a subsidiary of Saudi Telecom Company (STC), has signed Murabaha financing agreements worth 3.75 billion Saudi riyals ($999.77 million) with two local banks.

The company will secure SAR 2 billion from Saudi National Bank (SNB) and SAR 1.75 billion from Saudi Awwal Bank.

The facilities are likely to be used for refinancing the loan raised by STC, the company said in a statement to the Saudi stock exchange on Wednesday.

The 18-month financing will be covered by a promissory note issued by TAWAL for the total amount.

Saudi Arabia’s Public Investment Fund (PIF) is a major shareholder in STC and SNB, the statement added.

(Editing by Seban Scaria seban.scaria@lseg.com )