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Alhokair agrees $800m Murabaha term facility

Alhokair agrees $800m Murabaha term facility
The term Murabaha facility’s duration is seven years
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Riyadh – Mubasher: Fawaz Abdulaziz Alhokair Company has signed a Murabaha and revolving credit facility agreements with a number of banks.

Al Rajhi, NCB, Samba, ANB, Mashreq, and ADCB will provide a credit facility with a total value of $800 million (SAR 3 billion), according to a statement to the Saudi Stock Exchange (Tadawul).

The term Murabaha facility’s duration is seven years, and is subject to a one-year grace period, while the revolving credit facility’s duration is three years.

Alhokair plans to utilize the funds for the repayment of an existing loan, as well as fees, costs and expenses incurred in connection with the facility.

The company will also direct the credit facility towards its general corporate and working capital purposes.

The Murabaha term facility allows Alhokair to have a more optimized capital structure, by efficiently pursuing its strategic objectives, the statement noted, adding that it provides a significantly improved pricing and terms and conditions compared to its current debt while extending the debt maturity profile.