Mubasher: Kuwait Business Town Real Estate signed a seven-year Islamic credit facilities contract with a local bank at a value not more than KWD 16.5 million.

The facilities will be used in the settlement and repayment of KWD 5.6 million worth of liabilities in the form of loans due by the company to a local bank. The due debt has been already substituted and repaid, according to a bourse disclosure on Tuesday.

The contract will further include the settlement and repayment of existing facilities worth KWD 4.5 million as liabilities due by the company to the UAE branch of a local bank. The due debt has not been substituted and repaid to date.

Kuwait Business Town noted that the remaining value of KWD 6.4 million will be used in financing future foreign investments through Murabaha.

Kuwait Business Town said that no financial impact for the deal was seen to date, noting that reducing the profit margin and financing costs will reflect on the firm’s financial statements starting the fourth quarter of 2019.

It is worth highlighting that during the second quarter of 2019, Kuwait Business Town’s profits increased by 62.3% to nearly KWD 498,300 from about KWD 307,030 in Q2-18.