Riyadh, Saudi Arabia — stc’s subsidiary Telecommunications Towers Co. (TAWAL) has signed Murabaha financing agreements with Saudi National Bank (SNB) and Saudi Awwal Bank (SAB) for SAR 2 billion and SAR 1.75 billion, respectively.
The 18-month financing is covered by a promissory note by TAWAL for the full amount, stc said in a statement to Tadawul, according to Argaam.
The credit is intended to go towards refinancing the shareholders loan extended by stc to TAWAL.
There is a related party with respect to SNB Shariah-compliant Murabaha financing agreement, in which Yazeed Alhumied has an indirect interest as he serves on the boards of both stc and SNB, the telecom operator noted.
Furthermore, the Public Investment Fund (PIF) is a major shareholder in stc and SNB, the statement added.
