“This facility will be used in expansion plans for VIVA Bahrain in future in its all existing products and services,” said STC’s VP Finance, Ameen Al Shiddi.
VIVA Bahrain signed a $280 million Shariah compliant financing facility with two of the region’s most reputable financial institutions. The facility is seen as a highly sought after opportunity to establish long term business partnership with STC Saudi Arabia’s wholly owned subsidiary brand named VIVA in Bahrain. There was intense competition amongst the financial institutions in the region.
The final selection included HSBC Bahrain and Saudi -based SAMBA. The Shariah compliant financing facility of $ 280 million was shared $100 million by HSBC and US $ 180 million by SAMBA. The facility is denominated mostly in US Dollars to take advantage of the relatively low cost of financing for US dollars although part of the facility is denominated in Saudi Riyals and Bahraini Dinars too.
“STC is keen to expand its international operations in order to enhance the group’s overall profitability,” he added.
“Because of STC’s excellent credit rating and strong business fundamentals, we were able to leverage our relationships with financial institutions to support VIVA Bahrain’s financing facility at competitive rates,” he added.
VIVA Bahrain has positioned itself as one of the preferred operators in Bahrain capturing a healthy market share during the first ten months of launch.
VIVA’s management has been buoyed by the unprecedented customer demand from the Bahraini market, encouraging it to expand faster than planned. It is believed that this round of financing would meet almost all of VIVA’s requirements till it turns cash positive. The market was taken by surprise at the speed at which VIVA was able to reach country wide coverage in a short period of time. VIVA’s management believes that this level of investment and the quality of service are indicative of VIVA’s commitment to the Bahraini market.
“We are very pleased about the closure of the financing facility and we look at both HSBC and SAMBA as our strategic partners in our growth. VIVA is committed to serving the community in Bahrain with innovative offerings at affordable prices”,” said VIVA’s CEO, Ibrahim Abdulrahman Al Omar.
“In 2011, we will continue to enhance our offerings with innovative and easy to understand value-added services for our customers that will enrich their lives,” he added.
“We are proud to have been able to underscore this strong relationship between STC companies and Samba,” said Zaki Al-Yahya, Country Head PS and FI of SAMBA.
“HSBC is delighted to assist VIVA with this very important financing and we look forward to working as a key partner with the company in the future,” said HSBC CEO Patrick Gallagher.
VIVA proved to be an exceptional operator and have experienced remarkable demand in the first few months of its operations which resulted in the requirement for further investment in the company to enhance the products and services provided in the upcoming stage.
The signing ceremony was also attended by senior officials from STC Group, VIVA Bahrain, HSBC and Samba.