Abdullah A.M. Al-Khodari Sons Company announced that it has obtained Islamic credit facilities for renewal of existing credit facilities with Samba Financial Group, amounting to SR696 million as per the agreement signed on Tuesday, according to Tadawul website.
The purpose of the credit facilities is to provide bonding commitments and to fund capital and working capital requirements for the company’s specific projects and general business needs in Islamic financing forms.
The credit facilities comprise 38 percent murabaha financing and 62 percent multi-bonds and documentary credit.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The credit agreement will expire on Nov. 30, 2013, however the credit limits will mature over the life of the financed projects, which ranges between 18 to 60 months.
The repayment of the murabaha facilities will be on monthly basis ranging from SR750,000 to SR1,920,000 per month upon collection from respective projects.
In another development, the company announced receipt of letter from the Ministry of Water & Electricity (General Directorate of Water in Qassim) on Tuesday awarding it operation and maintenance of water projects in Assyah at Qassim for 60 months valued at SR23,998,657.
A further announcement will be made upon contract signing, including the expected start of the financial impact.
Al-Khodari gets SR696m credit facilities
