One of the leading operators in Saudi Arabia is modernising and expanding its 2G, 3G and 4G networks between 2013 and 2015 via a major new deal with Nokia Siemens Networks. Mobily KSA, an Etihad Etisalat company, will invest US$325m in the deal.
The CEOs of each company have signed a memorandum of understanding, under the terms of which NSN will facilitate a long term export credit of US$325m 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 US$325m over the next 18 months to upgrade and expand our mobile broadband infrastructure. This infrastructure upgrade will set a new benchmark in providing unmatched data service experience in Saudi Arabia.”