Leejam secures SAR 320 mln Islamic credit facility from Alinma Bank

Leejam Sports Co. headquarters

Leejam Sports Co. (Fitness Time) signed SAR 320 million Shariah-compliant credit facility agreement with Alinma Bank, according to a statement to Tadawul.

The credit facility includes a SAR 285 million medium-term loan (Murabaha financing) to finance the company’s capital expenditure and the requirements of acquisitions, in addition to a SAR 25 million short-term loan to fund the requirements of the working capital and SAR 10 million for multiple guarantees for government and semi-government institutions.

The tenor of the SAR 285 million facility extends for seven years, including a grace period of two years. Meanwhile, the short-term facility will extend for six months.

The facilities will be guaranteed by promissory notes, and the agreement included no related parties, the statement added.