SASCO renews, amends credit facility worth SAR 1.982 bln with Al Rajhi Bank

Logo of Saudi Automotive Services Company (SASCO) 

Saudi Automotive Services Co. (SASCO) renewed and amended a Shariah-compliant bank facility worth SAR 1.982 billion with Al Rajhi Bank, the company said in a bourse filling.

The facility includes long-term financing worth SAR 875 million and short-term financing worth 50 million, with SAR 1 billion in bank guarantees.

The long-term financing will be repaid as follows: SAR 200 million over seven years, including a two -year grace period, SAR 150 million over six years and SAR 525 million over 10 years, including a three -year grace period.

As for the short-term financing, SAR 50 million will be repaid over three months from the date of withdrawal.

The facility is guaranteed by a 100% order note, the statement added.

The long-term loan will be used to purchase new stations and renovate the existing ones, as well as partly finance the acquisition of 80% of Naft Co. and finance the working capital.

Meanwhile, the short-term financing aims to fund the working capital.

The Tadawul-listed company noted that it is hedging against fluctuations in floating profit rates and stabilizing profit rates.