Kuwait – Mubasher: Alargan International Real Estate has signed a credit facility agreement with a local bank for KWD 42 million, the company said in a bourse filing issued on Wednesday.

The loan will be used through two tiers; the first one is for KWD 31 million to repay liabilities due to a local bank and other creditors, and the second tier is worth KWD 11 million for financing future investment opportunities.

This credit facility has duration period of 10 years, and the repayment will be in semi-annual installments starting from January 2018 to January 2027.

In case the company does not use the second-tier loan before 31 December, 2017, the loan duration will be shortened to seven years, while the semi-annual repayment installments will be from January 2018 to January 2024, the statement clarified.

The interest rate will be declined by 0.5%; the financial impact will be registered in the consolidated financial statements over the duration of the loan.