Al-Khodari renews Islamic facilities worth SAR 625 mln with two banks

Abdullah A. M. Al-Khodari Sons Co. signed two agreements to renew sharia-compliant credit facilities worth SAR 625 million with two Saudi banks, according to the company’s statements on the Saudi bourse, Tadawul.

The agreements were inked with Alawwal Bank and Gulf International Bank (GIB) to renew Islamic facilities of SAR 373 million and SAR 252 million, respectively.  

The credit facilities, which include Murabaha financing and multi bonds, will fund working capital requirements related to some of the company’s projects, Al-Khodari said.

They are secured by a promissory note and the proceeds from the financed projects.

While the agreements will expire by the end of February, 2018, the credit limits will mature over the life of the prospective financed project, the statement added.