SASCO signs SAR 504 mln credit facilities with Riyad Bank to finance 80% NAFT acquisition

One of SASCO service stations

Saudi Automotive Services Company (SASCO) signed, on Feb. 20, Shariah-compliant facilities agreement worth SAR 504 million with Riyad Bank, the company said in a statement to Tadawul.

The long-term financing will be repaid over 10 years with a three-year grace period, with a hedging limit of SAR 54 million.

SASCO will use part of the financing to acquire an 80% stake in NAFT Services Limited Co., and hedge against fluctuations in floating interest rates and fixing rates.

The facilities are fully guaranteed by a promissory note, SASCO added, noting that there are no related parties to the agreement.

On Jan. 25, SASCO acquired 80% of NAFT for SAR 1.1 billion, Argaam reported.

SASCO said the deal will be financed via internal sources and bank facilities, and is expected to reflect positively on profitability as of Q2 2022.

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