Riyadh—Amlak
Abdullah Abdulmohsen Al-Khudari Sons Company signed a banking facility agreement based on Islamic financing principles with Gulf International Bank last Monday in the amount of 290,130,000 riyals (two hundred ninety million one hundred thirty thousand riyals).
The company explained in a press release published on the Tadawul website that these credit facilities are intended to provide a guarantee, finance working capital, and purchase fixed assets for the company, The credit facilities granted by Gulf International Bank include 52% of the total facility value in the form of Murabaha loans, and 48% of the total value as multi-purpose guarantees and documentary credits.
It is worth noting that the term of the financing facilities is 48 months, in line with the duration of the financed project(s), and the Murabaha facilities will be repaid in monthly installments of 2,000,000 riyals (two million riyals) per month. This agreement was concluded secured by a promissory note, in addition to the assignment of proceeds from the contract(s) for the financed project(s).
Al-Khudari Company also announced the signing of an agreement to renew Islamic financing facilities with Al-Rajhi Bank in the amount of 245 million riyals (two hundred forty-five million riyals).
The renewal of these credit facilities aims to provide a guarantee and to finance the capital and working capital needs of specific projects of the company and for the company’s business objectives in general. The credit facilities granted by Al Rajhi Bank include 61% of the total facility value in the form of Murabaha loans, and 39% of the total value as multi-purpose guarantees and documentary credits, which are renewable upon their expiration on March 31, 2014.
The principal amount of the utilized facilities will be repaid upon maturity. This agreement was secured by a promissory note, in addition to the assignment of proceeds from the contracts of the projects to be financed.
In addition, the company announced the completion of the signing of a contract with the Ministry of Municipal and Rural Affairs (Northern Border Region Secretariat) to implement a project for the collection, transportation, and disposal of waste east of the city of Arar, to be carried out over a period of 1,825 days from the date of taking possession of the work site, with a value of 65,000,000 riyals (sixty-five million riyals), based on the copy of the contract received at the company’s headquarters on 06/17/2013 AH after it was signed by His Highness the Minister of Municipal and Rural Affairs.