Mobily Raises Funds to Expand Saudi WiMAX Network

­Saudi Arabia's Etihad Etisalat (Mobily) has raised SAR 900 million (US$240 million) from SABB bank as a medium term financing to support the capital expenditure of its subsidiary Bayanat Al-Oula.

In a statement released on Wednesday, Mobily said the 66-month financing has been arranged on clean and unsecured basis on Bayanat's Balance sheet.

It also added that the new financing will assist the company to expand its WiMAX network geographic coverage to 20 cities from nine currently.

The company signed the infrastructure contract with Samsung for the network expansion in July.

Earlier this month, Mobily announced that it rescheduled a short-term, Islamic finance of SAR 1.5 billion it had obtained last year for the acquisition of Bayanat Al Oula in an agreements signed with SAMBA Financial Group, National Commercial Bank, Riyad Bank, and Saudi Arabian British Bank (SABB).

Mobily plans to begin its first WiMAX Wave2 commercial service in 2010 and will expand nationwide in the next several years.­

Posted to the site on 29th October 2009