Guidance Capital Markets (DIFC) Ltd. (Guidance) has arranged SR188 million ($50 million) of offshore, Islamic credit facilities for Abdullah A. M. Al-Khodari Sons Company, claimed to be the largest listed contracting company in Saudi Arabia, from a bank based in Abu Dhabi. This follows a related earlier company announcement on Saudi bourse.

Guidance acted as the sole arranger and Shariah structuring adviser to the company for the Murabaha facilities, which carry a three-year term, and will be used for issuance of performance bonds and meeting capex requirements of one of Al-Khodari’s construction projects.

The facilities mark Al-Khodari’s bespoke cross border term financing facility from a GCC-based bank. This is yet another unique transaction structured and arranged by Guidance for a Saudi construction and contracting company. Earlier, Guidance structured and arranged the first Malaysian Ringgit denominated sukuk program for a Saudi corporate, which carried a 10-year tenor, and under which the borrower has issued two separate tranches.

Guidance has advised and arranged Shariah-compliant debt financing from international markets for several GCC and North African corporate, particularly those based in Saudi Arabia and Morocco, opening doors to new sources of funding for the companies at attractive terms. The clients range from construction and contracting companies to real estate development firms and diversified conglomerates.

Tahir M. Naseem, CEO of Guidance Capital Markets, said: “Guidance is unique in terms of our ability to understand the specific funding requirements of local corporates and structure a tailored financing solution to attract foreign banks and investors who are eager for quality credits but do not have a local footprint in various markets. Guidance has successfully engineered the bridge for this foreign liquidity to flow into certain local markets, as witnessed by the first-of-its-kind project finance facility we have just arranged for Al-Khodari.”