Abdullah A. M. Al-Khodari Sons Company announces the signing of the renewal of Islamic credit agreement with Alawwal Bank on 18/04/2018 amounting to SAR 330 million (Saudi Riyals three hundred thirty million only).
The purpose of these credit facilities is to provide bonding commitments and fund capital requirements and working capital needs for the company's general purposes and specific projects. The modes of utilization are murabaha financing, multi bonds and documentary credit. These credit facilities are comprised of 50% Murabaha financing and 50% multi bonds.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The credit agreement shall be due for renewal after one year; however, the credit limits will mature over the life of the prospective financed projects. The major amounts of Murabaha facilities are settled at 50% of collected amounts from the financed projects.