Zain KSA announced that it had signed a SAR2.25bn long-term commercial loan facility agreement with a two-year tenor that is extendable by one additional year, a facility that was provided by a syndicate led by Arab National Bank and include four banks (Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group). The loan was signed on 2 June 2016 and matures on 31 May 2018, but is extendible until 30 May 2019, and is repayable in one bullet payment upon maturity. Moreover, the facility is guaranteed by parent company Zain Group (unconditional and irrevocable guarantee) and is subordinated to the main Murabaha facility of SAR8.5bn. The proceeds will be used to repay the older facility signed in June 2013 with the same syndicate.   Our view: The announcement is no surprise to us, as we were expecting that a refinancing would be accepted if requested by the company, and in our model, we had been forecasting at least a partial refinancing of the facility. The company did not announce the applicable interest rate; hence, we will continue to assume it was refinanced at the same preexisting rate. If that is the case, we would consider this to be somewhat positive for Zain KSA, considering the prevailing environment of rising interest rates in the country and considering that the company’s average cost of debt is already higher than that of its peers, given its risk profile. We expect this announcement to generate some positive short-term performance for the stock. (Company disclosure, Omar Maher, Karim Riad)   Zain KSA: SAR7.54 as of 02 June 2016, Rating: Neutral, FV: SAR9.49 per share, MCap: USD1,174 million, ZAINKSA AB / 7030.SE