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Abdullah A. M. Al-Khodari Sons Company inked a deal with Riyad Bank to renew an Islamic facilities agreement worth SAR 344.6 million, the company said in a statement to the Saudi bourse on Wednesday.
The move aims to provide bonding commitments, fund capital requirements, and working capital needs for the company's specific projects and general businesses. The modes of utilization are Tawarroq, progress payment, multi bonds, documentary credit and Murabaha financing.
The credit facilities renewed by Riyad Bank comprise of 62 percent Tawarroq and Murabaha and 38 percent multi bonds and documentary credit.
The renewable agreement, which expires May 12, 2018, is secured by a promissory note and contract proceeds of the financed projects.
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