Etihad Etisalat (Mobily) has signed memorandum of understandings with Nokia Siemens Networks and Ericsson to arrange $650 million in long-term financing to acquire equipment from the two companies, the Saudi telecom operator said Sunday. “Mobily will be working closely with the official Export Credit Agency of Finland (Finnvera) and the Swedish Export Credit Corporation (SEK) to complete the Shariah-compliant transaction,” Mobily said in a statement posted on the Saudi bourse website. Mobily said the deal would be the first of its kind in Saudi Arabia's telecom sector and would boost the company's free cash flow. Mobily is working with Credit Agricole and Deutsche Bank on the 10-year facilities. The investment will be used to upgrade its infrastructure, it said. Mobily, Saudi Arabia's No 2 of three mobile companies, said in January it would spend nearly $6 billion over five years to upgrade and expand the company's infrastructure. Late last month, Mobily has signed a partnership agreement with Advanced Electronics Company (AEC) aimed at launching a turnkey fleet management service for the government and private sectors. The partnership will produce an end-to-end service for business customers to effectively and efficiently manage their corporate fleet resources. The deal will facilitate a one-stop shop for business customers, where they will only have to interact with Mobily as the service provider. – SG
