CATRION’s subsidiaries ink 2 financing deals worth SAR 646M with SAB

Logo of CATRION Catering Holding Co.

CATRION Catering Holding Co.’s subsidiary, CATRION Catering Services LLC, signed on Sept. 16 a Shariah-compliant credit facility agreement with Saudi Awwal Bank for a total value of SAR 221 million.

In a statement to Tadawul, the company said that the facilities will be utilized for financing the ongoing Red Sea catering project, as SAR 209 million will be allocated to the project’s implementation costs, while the remaining SAR 12 million will go towards financing the value-added tax (VAT) during construction.

For more news and details on the projects

In a separate statement, CATRION announced that its subsidiary, CATRION Commercial Laundry LLC, signed a Shariah-compliant credit facility agreement worth SAR 425 million with SAB to finance the ongoing Red Sea central laundry project.

The amount of SAR 407.5 million of the financing, which was obtained on Sept. 16, will be allocated to the project’s implementation costs, while the remaining SAR 17.5 million will go towards financing the value-added tax (VAT) during construction.

The tenure of the projects financing is for 15.5 years, including a grace period of the first 13.5 months for the project financing, the statements added.

CATRION has provided a debt service undertaking, while both subsidiaries will provide promissory notes as main collateral to cover the facilities’ amount, the Saudi-listed firm noted, indicating that the deals don’t include related parties.