Ataa signs SAR 125 mln Murabaha bank facility with SAIB to reschedule existing loans

Logo of Ataa Educational Co.

Ataa Educational Co. signed on June 1, 2021, a Shariah-compliant Murabaha financing facility of SAR 125 million with Saudi Investment Bank (SAIB), the firm said in a statement to Tadawul today, June 2, 2021.

The purpose of the agreement is to reschedule several existing loans, worth SAR 100 million, with some Saudi banks and other obligations. The company will withdraw the entire new Murabaha financing according to the payments schedule of the existing loans and obligations.

While the maturity date of the existing loan with the current group of Saudi banks is 2021, the maturity date for the new Murabaha financing is 2026, with a grace period of one year from the drawing date.

The new facility agreement will provide better terms and competitive prices and restructure the balance sheet. In addition, it will also be used for financing working capital and facility line for letters of guarantee issuance as and when required.