Mobily Reschedules 1.5 Billion Riyals in Islamic Debt (Update1)

Etihad Etisalat Co., the second- largest mobile-phone company in Saudi Arabia, rescheduled a 1.5 billion-riyal ($400 million) Islamic loan with four Saudi banks.

The short-term financing will be repaid over four years, the Riyadh-based telecommunications provider said in a statement to the Saudi bourse today. Samba Financial Group, Riyad Bank, Saudi British Bank and National Commercial Bank were the lenders involved in the transaction.

Etihad Etisalat, also known as Mobily, received regulatory approval in 2008 to finance the purchase of Bayanat al-Oula for Network Services with a one-year loan. Mobily started operations in 2004 and is a unit of Emirates Telecommunications Corp. of the United Arab Emirates.