Al-Khodari renews SAR 330 mln Islamic credit facility

Abdullah A. M. Al-Khodari Sons Company’s (Al-Khodari) has renewed its SAR 330 million Islamic credit agreement with Alawwal Bank, it said in a statement to Tadawul on Wednesday.

The credit facilities, which comprise 50 percent Murabaha loans and 50 percent of multi bonds, will fund capital requirements and working capital needs for general purposes and specific projects.

The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.

The agreement will be due for renewal after one year; but the credit limits will mature over the life of the prospective financed projects, the statement said.

Majority of the Murabaha facilities will be settled at 50 percent of collected amounts from the financed projects, the company said.