National Building's subsidiary renews SAR 127M facility with Al Rajhi Bank

Logo of National Building and Marketing Co.

National Building and Marketing Co. announced that its subsidiary, Ajeej Steel Manufacturing Co., renewed today, March 11, a Shariah-compliant credit facility agreement worth SAR 127 million with Al Rajhi Bank, with the aim of financing working capital requirements, the company said in a statement to Tadawul.

The facility, running for four to 48 months depending on the nature of utilization, is guaranteed by the main terms and conditions of banking facilities, the facilities agreement, the forward sale agreement, approval of a fine, performance and commitment guarantee, and approval of a corporate guarantee, the company added.

National Building also stated that a financing limit for treasury products worth SAR 7 million has been added, which is used for the purpose of hedging against the risks of fluctuations in floating profit rates and stabilizing the profit rate, noting that there are no related parties.

The necessary signatures have been completed and a copy of the agreement was received today, it added.