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.
