Riyadh, Kingdom of Saudi Arabia – July 01, 2013
- Partners Finnvera, Finnish Export Credit, Deutsche Bank, Credit Agricole for loan
- Nokia Siemens Networks facilitates 10-year export credit
Mobily (Etihad Etisalat Company), a leading telecom operator in Saudi Arabia, is set to further modernize and expand its 2G, 3G and 4G networks between 2013 and 2015. Under this major initiative, Khalid Al-Kaf, CEO of Mobily, today signed a Memorandum of Understanding (MoU) with Rajeev Suri, CEO of Nokia Siemens Networks. As per the MoU, Nokia Siemens Networks will facilitate a long term export credit of 325 mn USD with Finnvera, Finnish Export Credit (FEC), and lenders Credit Agricole and Deutsche Bank. Mobily will use this credit to purchase advanced solutions and services from Nokia Siemens Networks.
The Finnish export credit agency Finnvera and its subsidiary Finnish Export Credit (FEC) have issued their guarantee and financing offers. Mobily has mandated Credit Agricole and Deutsche Bank to structure and arrange for Shariah Compliant financing, for which the services of Latham & Watkins as legal counsel to Mobily, and Allen & Overy as legal counsel to lenders have been sought.
Khalid AI-Kaf, CEO, Mobily, said: “In our commitment to constantly enhance mobile broadband service experience for our customers, we will be investing 325 mn USD over the next 18 months to upgrade and expand our mobile broadband infrastructure. This infrastructure upgrade using Nokia Siemens Networks’ advanced solutions and services will set a new benchmark in providing unmatched data service experience in Saudi Arabia.”
Gergely Abraham, Head of Structured Finance, Nokia Siemens Networks Middle East, said: “We are committed to helping Mobily provide top quality mobile broadband services for its customers across the country. To support Mobily’s investment plan, we have facilitated a 325 mn USD long-term loan with leading export credit agencies and high-quality lenders. Having worked with Mobily for a long time, Nokia Siemens Networks fully grasps the operator’s needs, and is well placed to provide support at all possible levels.”
Topi Vesteri, Executive Vice President of Finnvera, said: “This will be the largest transaction Finnvera and FEC is supporting in the Kingdom of Saudi Arabia, and in the Middle East. We look forward to contributing with our credit enhancement of highest credit quality to the success of Mobily and Nokia Siemens Networks in the growing Saudi Arabian telecom market. We highly appreciate the close cooperation with Mobily, Nokia Siemens Networks and the lenders throughout the process.”
Pictures of MoU sigining by Nokia Siemens Networks and Mobily are available here:
Picture 1, left to right – Nokia Siemens Networks CEO Rajeev Suri and Mobily CEO Khalid Al-Kaf.
Picture 2 – left to right – Nokia Siemens Networks CEO Rajeev Suri, CFO Samih Elhage, and Mobily CFO Thamer Alhosani and CEO Khalid Al-kaf.
For more information on Nokia Siemens Networks’ mobile broadband capabilities, including a video overview, follow this link. To share your thoughts on the topic, join the @NokiaSiemensNet discussion on Twitter using #mobilebroadband and #LTE.
Mobily is the fastest growing mobile communications and technology provider in the Kingdom of Saudi Arabia.
Etihad Etisalat (Mobily) was established in 2004 by a consortium led by Etisalat, the UAE based telecom conglomerate. Mobily is the official brand name of Etihad Etisalat, renowned as the second mobile service provider in the Kingdom of Saudi Arabia.
The awarded 25-Year telecommunication mobile license was complemented by a subsequent purchase of a 3G license. Mobily is the 1st Saudi communications company to get an operation license for 3rd generation services and beyond. In December 2004, Mobily was listed on Tadawul Stock Exchange. Today, Mobily equates to 40%+ market share of the mobile subscriptions in the Kingdom. In March 2008, Mobily was granted approval by CITC (Communication and Information Technology Commission) to acquire Bayanat al-Oula which was a licensed Data Service Provider for a price of SAR 1.5 Billion. And, in November 2008, Mobily acquired absolute majority stakes in Zajil, the leading Saudi ISP (Internet Service Provider).
Mobily owns vast majority shares in the Saudi National Fiber Network (SNFN) composed with 12,800 KM of structured fiber cable, panned into 7 fully protected rings covering 35 Saudi cities plus access to 60 major hub sites for telecommunications prime points of presence, and complimented with 20 inter-metropolis fiber loops in major Saudi cities. Furthermore, Mobily is a lead investor in prime global submarine cable projects that are expected to be operational in the near future.http://www.mobily.com.sa/
About Nokia Siemens Networks
Nokia Siemens Networks is the world’s specialist in mobile broadband. From the first ever call on GSM, to the first call on LTE, we operate at the forefront of each generation of mobile technology. Our global experts invent the new capabilities our customers need in their networks. We provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services to make it all work seamlessly.
With headquarters in Espoo, Finland, we operate in over 120 countries and had net sales of approximately 13.4 billion euros in 2012.http://www.nokiasiemensnetworks.com
Finnvera is the official Export Credit Agency of Finland providing export credit guarantees and financing solutions backed by the full faith and credit of the Republic of Finland. http://www.finnvera.fi
Nokia Siemens Networks
Head of Regional Marketing, MEA
Phone: +97 15668 18158
Phone: +358 7140 02869