In an effort of rebalancing its debt exposure especially the Short Term portion, Fawaz Abdulaziz Al Hokair & Co. signed a new Murabaha Agreement with Alrajhi Bank under the following terms:
1.The Murabaha was signed on Tuesday 22nd of August 2017
2.Amount: SAR 1,250,000,000
3.Tenure: 7 Years
4.Issuer: Alrajhi Bank
5.Objective: repayment of all short term loans
6.Guarantee: corporate guarantee, sales proceeds deposit in the company's bank accounts in Alrajhi Bank
7.No related parties involved
8.Payment plan: progressive payment plan every six months
This Murabaha is an important milestone in the relationship between the two companies and will enable Fawaz Abdulaziz Al Hokair & Co. to rebalance a significant part of its Balance Sheet and to boost its ability to improve its performance.