SASCO signs SAR 630 mln credit facility agreement with Al Rajhi Bank

SASCO fuel station

Saudi Automotive Services Co. (SASCO) signed a Shariah-complaint bank facility agreement, worth SAR 630 million, with Al Rajhi Bank on Jan. 7, 2021, the firm said in a statement to Tadawul.

The facility includes the following:

- Long term financing of SAR 200 million to be paid over seven years, including a two-year grace period.

- Long-term financing of SAR 250 million to be paid over six years, including a one-year grace period.

- Short-term financing of SAR 100 million, extending up to three months from the date of withdrawal.

- Bank guarantees worth SAR 50 million.

- Hedging limit of SAR 30 million.

The objective of the long-term facility is to purchase and build new fuel stations, renovate existing stations, and pay off a part of the existing financing.

The short-term loan aims to finance working capital.

The bank guarantees aim to ensure payment for the purchase of fuel, while the hedging limit seeks to provide protection against fluctuations in floating profit rates and stabilizing profit rate.