Abdullah A. M. Al-Khodari Sons Company announces the renewal of Islamic Facilities Agreement.
Abdullah A. M. Al-Khodari Sons Company announces the signing of the renewal of existing Islamic Facilities Agreement with Riyad Bank on 13/11/2016 in the amount of SAR 276,048,000 (Two Hundred Seventy Six Million Forty Eight Thousand Saudi Riyals).
The purpose of these credit facilities is to provide bonding commitments and to fund capital requirements and working capital needs for the company specific projects and general businesses. The modes of utilization are tawarroq, progress payment, multi bonds, documentary credit and murabaha financing.
The credit facilities renewed by Riyad Bank comprise of 64% tawarroq and murabaha and 36% multi bonds and documentary credit.
The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects. The credit facilities agreement is renewable at its expiry date of 30/09/2017, however, the credit limits extended by the bank will mature over the life of the respective financed projects which ranges between 2 to 5 years tenor.