Riyadh – Mubasher: Saudi Automotive Services Company (SASCO) has signed a Shariah-compliant bank facilities worth SAR 630 million with Al-Rajhi Bank, according to the company's disclosure to the Saudi Stock Exchange (Tadawul) on Sunday.
The facilities comprise two long-term loans worth SAR 200 million and SAR 250 million, a SAR 100 million short term loan, SAR 50 million bank guarantees, and SAR 30 million hedging limit.
The SAR 200 million long-term financing will be paid over seven years, including a two-year grace period, while the SAR 250 million financing will be paid over six years.
Meanwhile, the short-term financing will be extended to three months from the date of withdrawal.
Through the long-term loan, the company will purchase and build new stations, renovate existing stations, and pay off some of the existing financing.
At the same time, the short-term loan will be used in financing working capital.
It is noteworthy to mention that in late December, the company renewed and rescheduled an existing Sharia-compliant facility agreement worth SAR 536.320 million with Riyad Bank to suit the company's cash flow conditions and improve the cash and liquidity performance.