DUBAI, June 18 (Reuters) - Viva Kuwait, an affiliate of Saudi Telecom Co (STC), has signed a $270 million, five-year loan with National Bank of Kuwait (NBK) to finance the operator’s network expansion, it said in a statement on Tuesday.
This borrowing includes a $70 million murabaha facility - a cost-plus-profit arrangement in Islamic finance - from NBK subsidiary Boubyan Bank.
Viva, which competes with Zain and Ooredoo (Qatar Telecom) subsidiary Wataniya, has built a 27 percent market share since launching services in 2008, according to Zain’s first-quarter earnings statement.
STC owns 26 percent of Viva Kuwait. The affiliate has yet to list on the Kuwait bourse nearly five years after completing an initial public offer of shares. (Reporting by Matt Smith; Editing by Andrew Torchia)