Riyadh - Mubasher: Saudi Ground Services Company (SGS) has sealed a Murabaha financing agreement with the Saudi British Bank (SABB) for SAR 500 million to cover the working capital required for operations.

The loan term is extended over 30 months, according to a statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

The transaction, guaranteed by a promissory note, aims at achieving the balanced cash policy set forth by the company as a precautionary measurement to boost the current cash reserve, in an attempt to mitigate the COVID-19 effects on the working capital.

Chairman of the board, Khalid Qasim Al Buainain, and board member, Mansour Abdulaziz Al Bosuli, are related parties to the contract, as being board members in HSBC Saudi Arabia in which SABB owns a 49% stake.