The Murabaha facility is Marafiq's first commercial financing transaction. It saw strong interest from the bank sector to the extent that it was oversubscribed and received SR7.5 billion in total commitments. The facility has been structured as an amortizing one with an availability period of 36 months and a profit margin linked to Saudi Interbank Offered Rate (SIBOR).

Thamer Al-Sharhan, Marafiq president and CEO, said the proceeds of the Murabaha facility would be used to finance Marafiq's ongoing capital expenditure program and other operational requirements. "With Jubail and Yanbu industrial cities expanding at an unprecedented rate, Marafiq will have its work cut out to provide in the ever-increasing utility demand of the two cities. This facility is a significant milestone along our journey as a private company. It places us on a firm platform for meeting our customers' needs and supporting the development of the Kingdom's industrial base."

Marafiq is a multi-utility service provider operating in Jubail and Yanbu industrial cities. The company started commercial operations in January 2003 and plays a strategic role in the Kingdom's economic and industrial development program.

In financial circles Marafiq's inaugural financing deal has been described as one of the best so far in the market for its competitive structure and the overwhelming response it has received across all major banks in Saudi Arabia.

The mandated leader arrangers for the Murabaha Facility are Arab National Bank, Banque Saudi Fransi, National Commercial Bank, Samba Financial Group, Saudi British Bank (SABB) and Saudi Hollandi Bank. Samba Capital and Investment Management Company acted as Financial adviser to Marafiq, with Banque Saudi Fransi acting as the documentation bank. The National Commercial Bank has been appointed as the investment agent for the Murabaha facility.