Al Khodari Sons renews SAR 231m Islamic loan

Al Khodari Sons renews SAR 231m Islamic loan
Al Khodari Sons renewed an Islamic facilities agreement with Riyad Bank worth SAR 231.377 million
ALKHODARI
1330
0.14% 7.24 0.01
RIBL
1010
1.56% 16.96 0.26

Riyadh – Mubasher: Abdullah Abdul Mohsen Al Khodari Sons Company on Thursday said it has renewed an existing Islamic facilities agreement with Riyad Bank at a value of SAR 231.377 million ($61.7 million).

The loan aims to provide bonding commitments, fund capital requirements, and working capital for the company’s specific projects and general businesses, Al Khodari said in a filing to the Saudi Stock Exchange (Tadawul).

The company indicated that the facilities include tawarroq, progress payment, multi-bonds, documentary credit, and Murabaha financing.

The renewed facilities by Riyad Bank are made up of 63% Murabaha, 37% multi bonds, and documentary credit, Al Khodari highlighted.

“The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects,” it added, noting that the agreement was renewable at its expiry date of 25 February 2021.

By the end of Wednesday’s trading session, Al Khodari’s stock slid 0.53% to SAR 7.48.

In May, Al Khodari Sons Company announced renewing an Islamic loan with Al Bilad Bank for SAR 75.908 million.