Zain Saudi Arabia awarded Middle East Telecoms Deal of the Year 2013

Accolade bestowed by Project Finance magazine for Zain KSA's historic renegotiation of a US$ 2.3 billion Murabaha and a US$ 600 million facility

Riyadh, Kuwait - 15 March 2014: Zain Group, a pioneer in mobile telecommunications across eight markets in the Middle East and North Africa is proud to announce that its operation in Saudi Arabia has been singled out as the recipient of the Middle East Telecoms Deal of the Year 2013 for having closed two facilities, namely a SAR 8.63 billion (US$ 2.3 billion) Murabaha facility in July 2013 and a SAR 2.25 billion (US$ 600 million) facility in June 2013.

At a ceremony held in Dubai last week, reputable UK-based ProjectFinance magazine awarded the prestigious accolade to Zain KSA in acknowledgement of its renegotiation of two facilities to finance a network expansion that was originally set to mature in 2012.

The amended SAR 8.63 billion limited-recourse facility, which went on to become the largest pure commercial bank deal in Saudi Arabia in 2013, has a tenor of five years to July 31, 2018, and was restructured as an amortizing facility, 25% of which will be due during years 4 and 5 of the life of the facility, with 75% due at maturity. Moreover, the new Murabaha facility arrangement carries a decreased profit margin by around 18% (equivalent to 75 basis points) compared to the previous agreement, with the possibility for further reduction in line with the improving credit metrics.

Commenting on the recognition of the deal by ProjectFinance magazine, Scott Gegenheimer, Zain Group CEO said, "Zain Group remains totally committed to supporting its operation in Saudi Arabia, and we are proud to see the company recognized for its financial arrangements. We are confident that the transformation of Zain KSA will make this mobile operation a highly successful player in the Saudi telecom market and a healthy contributor to the Group's overall operations."

Zain KSA CEO, Hassan Kabbani said: "The resounding support of a broad base of local and international financial institutions in these facilities is a confirmation of the banking community's confidence in the company."

Furthermore, Kabbani noted, "2013 was a significant year for Zain KSA as we were able to conclude a number of significant financial transactions that helped free up cash-flow, improve our financial situation, and position us strongly to contend with the future development of our 4G LTE network and the rollout of customer enhancing services in the years to come."

Apart from the two financial transactions acknowledged in this award, Zain KSA's cash-flow position was also enhanced in 2013 by the Kingdom's Ministry of Finance (MOF) sanction of a seven-year deferment of annual dues and other obligations, allowing for the postponement of payments totalling US$1.5 billion to the MOF until 2021.

Prior to closing on the Murabaha facility, Zain KSA had partially repaid the prior facility by an amount of US$ 100 million, utilizing a portion of its internal cash resources. The company's financial progress is in line with the overall positive momentum being enjoyed at Zain KSA, which has resulted in the heightening of its performance as it follows a strategy of operational excellence, better customer experience, and greater brand alignment.

On the US$ 2.3 billion Murabaha facility, the bookrunners were Al Rajhi Bank (ARB), Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Credit Agricole CIB (CACIB). The Mandated Lead Arrangers were ARB, ANB, BSF, Boubyan Bank, CACIB, Gulf Bank (Kuwait), National Bank of Kuwait (NBK) and Saudi British Bank. On the US$ 600 million facility, four banks provided the loan - Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group.

The legal firms that supported Zain and the financial institutions in these transactions included Clifford Chance, Latham & Watkins and Allen & Overy. ENDS

About Zain Group
Zain is a leading telecommunications operator across the Middle East and Africa providing mobile voice and data services to over 46.1 million active customers as of 31 December, 2013. With a commercial presence in 8 countries, Zain operates in: Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan and South Sudan. In Lebanon, the Group manages 'touch' on behalf of the government. In Morocco, Zain has a 15.5% stake in 'INWI', through a joint venture. Zain is listed on the Kuwait Stock Exchange (stock ticker: ZAIN).

For more, please email info@zain.com or visit:
www.zain.com
www.facebook.com/zain
www.twitter.com/zain
www.youtube.com/zain
www.instagram.com/zaingroup
www.linkedin.com/company/zain