SASCO reschedules existing SAR 536.3 mln credit facility with Riyad Bank

Saudi Automotive Services Co. (SASCO) signed today, Dec. 30, 2020, an agreement to renew and reschedule an existing SAR 536.3 million Shariah-compliant facility with Riyad Bank, the company said in a statement to Tadawul.

The agreement aims to improve the company’s cash flow conditions, along with cash and liquidity performance.

The total value of the existing facility is SAR 536.32 million, comprising long term loan (SAR 354 million), short term loan (SAR 20 million), bank guarantees (SAR 130 million), documentary credits (SAR 20 million) and hedging limit (SAR 12.32 million).

The amount that will be rescheduled from long term loan is SAR 154 million, the statement noted.

After rescheduling, the financing period for long term loan is seven years in semi-annual installments, and 360 days for short term loan. Earlier, the financing period for long-term loan was five years, in addition to a two-year grace period in semi-annual installments, and 360 days for short-term loan.

The facility is guaranteed by an order note and there are no related parties, the statement noted.