Riyadh - Mubasher: Middle East Healthcare Company signed on Tuesday an Islamic finance agreement (Murabaha) with Samba Financial Group at a value of SAR 300 million ($800 million).

The loan's period extends till the end of December 2019, according to a bourse filing on Wednesday.

Saudi German Hospitals aims to finance construction and equipping of Saudi German Hospital Dammam through the loan, which is guaranteed by a promissory note from the company.

The loan will be paid on 14 semiannual installments, starting after 36 months grace period, so that the first payment will be in June 2020 and the last one in December 2026, the statement said.

On 7 December, the company awarded the contract for the construction of Saudi German Hospital in Dammam to International Hospital Construction Company.

The SAR 336.4 million contract included providing medical equipment and furniture; construction is set to start from 7 December 2016, and is expected to be completed by 6 June 2019.