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Abdullah A. M. Al-Khodari Sons Company announces the signing of Islamic credit facilities agreement with Riyad Bank on 19/11/2012 amounting to SAR 400 million.
The purpose of these credit facilities is to provide bonding commitments and to fund capital requirements and working capital needs for the company's specific projects under modes of Islamic financing. The modes of utilization are tawarroq, progress payment, multi bonds, documentary credit and murabaha financing.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The credit agreement will expire on 09/04/2014 however the credit limits will mature over the life of the financed projects which ranges between 01 to 05 years. The repayment of the facilities will be upon collection of the financed projects proceeds.
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