AL-KHODARI SECURES NEW ISLAMIC FINANCE TO RENEW EXISTING DEBT

Abdullah A. M. Al-Khodari Sons Company announces obtaining Islamic credit facilities for renewal of existing credit facilities with SAMBA Financial Group amounting to SAR 696 million as per the agreement signed on 20/08/2013.
The purpose of these credit facilities is to provide bonding commitments and to fund capital and working capital requirements for the specific Company projects and general business needs in Islamic financing forms. The credit facilities are comprised of 38% murabaha financing and 62% multi bonds and documentary credit. 
The facilities are secured by promissory note and assignment of the contracts proceeds of the financed projects. The credit agreement will expire on 30/11/2013 however the credit limits will mature over the life of the financed projects which ranges between 18 to 60 months. The repayment of the murabaha facilities will be on monthly basis ranging from SR 750,000 to SR 1,920,000 per month upon collection from respective projects.