ProMedEx renews, hikes BSF credit facility to SAR 50 mln

Logo of Professional Medical Expertise Co. (ProMedEx)

Professional Medical Expertise Co. (ProMedEx) renewed and increased its credit facility agreement with Banque Saudi Fransi (BSF). The parties agreed to renew last year’s facilities of SAR 40 million, and leverage the contract by SAR 10 million, bringing the credit facility total value to SAR 50 million. 

In a statement to Tadawul, ProMedEx pointed out that the multi-purpose facility agreement allows the company to use the appropriate limit according to the company’s needs and the Saudi market’s requirements to cover the medical service provider’s existing and future projects. 

The contract will be valid until August 31, 2024, with an aim to finance suppliers’ purchase orders to import goods. It will also cover the issuance of final guarantees for local projects. 

The facilities will help ProMedEx finance its current and upcoming projects, including 80% finance to pay supplier invoices, with a maximum limit of SAR 40 million, in addition to the Shariah-compliant letter of credit with a maximum amount of SAR 25 million, multiple import limit at SAR 40 million maximum, bidding bonds (bank guarantees) with a maximum financing limit of SAR 6 million, and payment guarantees at maximum SAR 10 million. 

The facility agreement is covered by SAR 50 million at-sight demand notice covering the total facilities, guaranteed by a promissory note with a total of SAR 32.14 million from Al-Omran Holding Co. to secure 64.27% of the total facilities. It is also secured by a SAR 2.87 million promissory note submitted by Riyad Abunayyan covering 5.73% of the total facilities. 

Moreover, institutional guarantees amounting to SAR 32.14 million from Al-Omran Holding Co., and personal guarantees of SAR 2.87 million from Riyad Abunayyan, were utilized to cover 64.27% and 5.73% of the total facilities, respectively. 

The company also provided a general waiver of all dues from government agencies and a securitization financing agreement.