Abdullah A.M. Al-Khodari Sons Company has renewed its SR290,130,000 Islamic credit facilities agreement with Gulf International Bank (GIB), according to the company’s announcement posted on Tadawul website.

The company, which signed the agreement to this effect, stated that these credit facilities are to provide bonding commitments and fund the working capital, and capex requirements of the projects. 36 percent of the facilities are funded under murabaha modes of financing, whereas 64 percent limits are for multipurpose bonds and documentary credits.

The tenure of credit limits ranges from 6 months to 48 months, depending upon the purpose of their utilization. The murabaha facilities are to be liquidated in quarterly and semi-annual installments of various values. The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.