ProMedEx obtains SAR 50M credit facilities from Bank AlJazira

Logo of Professional Medical Expertise Co. (ProMedEx) 

Professional Medical Expertise Co. (ProMedEx) obtained Shariah-compliant credit facilities from Bank AlJazira, leveraging a credit limit of SAR 50 million.

The company said in a Tadawul statement that the facilities would be used to finance the purchase and import of medical supplies, devices, and equipment from local and international suppliers through supplier invoice financing, documented letters of credit, and standby letters of credit, thereby supporting its operational needs.

The facilities include revolving sub-limits of up to SAR 15 million to finance invoices from foreign suppliers through deferred-sale arrangements leading to Tawarruq under the Dinar Program, with financing of up to 80% of the value of each invoice. This is besides SAR 35 million for sight or deferred-payment documentary credits financed through deferred-sale arrangements leading to Tawarruq, as well as SAR 35 million for standby letters of credit.

This is besides SAR 35 million for sight or deferred-payment documentary letters of credit financed through deferred-sale arrangements leading to Tawarruq, as well as SAR 35 million for trust receipts.

ProMedEx noted that the combined utilization of all sub-limits must not exceed SAR 50 million at any given time. Accordingly, the sub-limits do not represent financing amounts that could be added together.

The financing runs for a one-year term from the date of the facility offer letter, while the provided security consists of a SAR 55 million promissory note, according to the company.

ProMedEx also noted that the renewal documents for the credit facility agreement date to Sept. 21, while the agreement was fully signed on Oct. 5.

There are no related parties involved in the deal, the company added.