Abdullah A. M. Al-Khodari Sons Company announces the renewal of Islamic credit facilities.
Abdullah A. M. Al-Khodari Sons Company announces the signing of the renewal of existing Islamic credit facilities agreement with Al-Bilad Bank on 03/01/2017 in the amount of SAR 124,491,000 (one hundred twenty-four thousand four hundred ninety-one thousand Saudi Riyals).
The purpose of these facilities was to provide bonding commitments and fund the working capital and capex requirements of the company. 42% of the facilities are funded under Murabaha modes of financing, whereas 58% limits are for multi-purpose bonds.
The credit agreement shall expire on 11/10/2017 however the credit limits shall mature over the contractual lives of the financed projects which ranges between 24 to 36 months. The Murabaha facilities are to be settled at a certain percentage of the periodical collected amounts from the financed projects. The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.