Riyadh – Mubasher: Abdullah Abdul Mohsen Al Khodari Sons signed on Sunday a renewal of the existing Islamic Facilities Agreement with Riyad Bank worth SAR 276.05 million.
The credit facilities aim at providing bonding commitments and funding capital requirements and working capital needs for the company specific projects and general businesses, according to a bourse filing.
The modes of utilization are tawarroq, progress payment, multi bonds, documentary credit and murabaha financing. The renewed facilities comprise of 64% tawarroq and murabaha and 36% multi bonds and documentary credit, the statement said.
The duration of the agreement ranges between two and five years, according to the periods of the financed projects.
"The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The credit facilities agreement is renewable at its expiry date of 30/09/2017," the filing added.
In August, the company announced the renewal of existing Islamic credit facilities with Samba Financial Group at a total value of SAR 132 million.
