Riyadh-Mubasher: Abdullah A. M. Al-Khodari Sons Co. signed on Thursday an Islamic credit facility agreement with Bank Albilad at a total value of SAR 274 million, the company said in a bourse statement.
The agreement includes renewing the existing outstanding limits, the statement added.
The facilities aim to provide bonding commitments and fund the working capital and capex requirements of the company.
Al-Khodari added that 27% of the facilities are funded under Murabaha modes of financing, while 73% limits are for multi-purpose bonds.
The credit agreement will expire on 8 September 2016, and the credit limits will mature over the contractual lives of the financed projects which range between 36 to 60 months.
The Murabaha facilities are to be settled at a certain percentage of the periodical collected amounts from the financed projects.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.
