Riyadh – Mubasher: Ataa Educational Company has signed a Shariah-compliant Murabaha financing agreement worth SAR 125 million with the Saudi Investment Bank (SAIB).

The financing agreement aims to reschedule a number of existing loans with some Saudi banks and other obligations worth SAR 100 million, according to a bourse filing on Wednesday.

Through Murabaha financing, the company will also finance working capital and facility lines for letters of guarantee issuance.

The existing loan with the current group of Saudi banks is due in 2021, while the new Murabaha financing is due in 2026, with a grace period of one year from the date of the drawing.