AL-KHODARI RENEWS ISLAMIC CREDIT FACILITY AGREEMENT

Abdullah A. M. Al-Khodari Sons Company announces the signing of the renewal of existing Islamic credit agreement with Alinma Bank on 19/12/2013 amounting to SAR 500,000,000 (Only Five Hundred million Riyals). 
The purpose of these credit facilities is to provide bonding commitments and fund capital requirements and working capital needs for the company's general purposes and specific projects. The modes of utilization are murabaha financing, multi bonds and documentary credit. These credit facilities are comprised of 59% murabaha financing and 41% multi bonds and documentary credit.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The agreement will expire on 30/11/2014; however, the credit limits will mature over the life of the prospective financed projects which ranges between 3 to 4 years. The basis for the repayment of the Murabaha facilities will be against collection from the respective projects.