AL-KHODARI SIGNS ISLAMIC FINANCE AGREEMENT FOR DEBT RENEWAL

Abdullah A. M. Al-Khodari Sons Company announces the signing of Islamic credit agreement for renewal of existing and new credit facilities with National Commercial Bank (NCB) on 25/11/2012 amounting to SAR 735,669,078. 
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 50% murabaha financing and 50% 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 30/09/2013, however, the credit limits will mature over the life of the financed projects. The repayment of the Murabaha facilities is on monthly basis ranging from SR 220,000 to SR 10,000,000 per month.