Abdullah A. M. Al-Khodari Sons Company announces the renewal of Islamic Credit Facilities Agreement with Alawwal Bank.
Abdullah A. M. Al-Khodari Sons Company announces the signing of the renewal of Islamic credit agreement with Alawwal Bank on 28/03/2017 amounting to SAR 373 million (Saudi Riyals three hundred seventy-three million only).
The purpose of these credit facilities is to provide bonding commitments and fund capital requirements and working capital needs for the company's general purposes and specific projects. The modes of utilization are murabaha financing, multi bonds and documentary credit. These credit facilities are comprised of 50% Murabaha financing and 50% multi bonds.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The agreement will expire on 28/02/2018; however, the credit limits will mature over the life of the prospective financed projects. The major amounts of Murabaha facilities are settled at 50% of collected amounts from the financed projects.