Riyadh-Mubasher: Abdullah A. M. Al-Khodari Sons Co. has signed an Islamic credit facility agreement with Banque Saudi Fransi (BSF) at a total value of SAR 294.3 million.
The agreement consists of additional new credit facilities, along with renewal of the existing outstanding limits, the company said in a bourse statement.
The purpose of these facilities is to provide bonding commitments and fund the working capital and capex requirements of the company.
"64 % of the facilities are funded under Murabaha/ Tawarruq modes of financing, whereas 36 % limits are for multi bonds and documentary credits," the statement added.
The credit agreement will expire on 31 May 2016, and the credit limits will mature over the contractual lives of the financed projects which range between 35 to 36 months.
The facilities are to be liquidated in monthly installments of varying amount between SAR 1 million to SAR 2.1 million per month.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.
