SHL signs financing agreements with ANB, Riyad Bank for SAR 815 mln

Logo of Saudi Home Loans (SHL)

Saudi Home Loans (SHL) signed Shariah-compliant banking facilities agreements with Arab National Bank (ANB) and Riyad Bank, for a total value of SAR 815 million.

The ANB facility is a fixed-term Tawarruq financing limit (on demand) of SAR 500 million, while Riyad Bank’s is Tawarruq credit facility limit of SAR 300 million with treasury product limit of SAR 15 million, SHL said in separate statements.

The financing term with ANB is five years, and Riyad Bank is three years, the statements said.

The ANB facility is guaranteed by a promissory note for the total financing, and assignment of receivables and related Sukuk to cover 105% of the outstanding balance of the facilities.

Riyad Bank financing is covered by a promissory note for the total amount, and assignment of receivables and related Sukuk to cover 125% of the outstanding balance of the facilities.

The agreement with ANB includes a related party, while there are no related parties in the agreement with Riyad Bank, SHL said.

The purpose of the funding is to expand and increase SHL’s sales volume through new originated loans to its customers, in line with the strategy and future plans.