Saudi Arabia’s Etihad Etisalat (Mobily) has agreed with all its creditors to waive a violation of the terms of around SR12.1bn ($3.2bn) of debt, it said in a market statement.

Mobily, a subsidiary of Abu Dhabi’s Etisalat, posted heavy losses in 2015 after the Saudi Capital Markets Authority (CMA) ordered it to review its accounting methods. In total, it made a net loss of SR1.6bn in 2014 and SR1.1bn in 2015.

This pushed it below the net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio, breaching certain covenants in the financing conditions.

The telecommunications company negotiated waivers with the majority of its Saudi lenders by late 2015. The remainder, including international banks and export credit agencies, have now agreed the waiver.

HSBC advised Mobily on its negotiations with creditors, according to Bloomberg.

Mobily shares on the Tadawul were up 4 per cent on 17 May, but are still 16.7 per cent down year on year.