Complex Made Simple

Mobily shares close flat as firm secures Islamic refinancing

The Tasi equity benchmark in Riaydh ended down 0.12% to 6,147.54 points Wednesday, as bellwether Sabic lost 0.78%, finishing at SR95.00. Earlier in the day, the IMF said it expects the Saudi economy to grow by 3.6% in 2012, down from a forecasted 6.5% in 2011. The highest day gain was once again done by an insurance firm: Gulf General Cooperative Insurance Co. ended up 9.95% at SR40.90. Shares of Etihad Etisalat or Mobiliy closed even at SR51.50. Mobily has announced that "the firm in the process of concluding an Islamic refinance agreement with Saudi local banks to refinance the balance of the following loans: a SR10.78bn long-term loan, which it obtained in 2007; a medium-term SR1.5bn loan, it obtained in 2009; and a short-term SR1.2bn loan it got in 2010. These loans were timely disclosed." The Mobily share has doubled in value during the last three years, however, in 2011 it has not been creating shareholder value (as yet).