AL-KHODARI SIGNS ISLAMIC FINANCE AGREEMENT WITH SAUDI HOLLANDI BANK

Abdullah A. M. Al-Khodari Sons Company announces the signing of Islamic credit facilities agreement with Saudi Hollandi Bank (SHB) on 15/04/2013 in the amount of SAR 1,041,609,000 (One Billion Forty One Million Sixty Hundred Nine Thousand Saudi Riyals). The agreement consists of additional new credit facilities along with renewal of the existing outstanding limits. 

The purpose of these facilities is to provide bonding commitments and fund the working capital and capex requirements of the company. 52% of the facilities are funded under Morabaha/Tawarroq modes of financing, whereas 48% limits are for multi bonds and documentary credits. 

The credit limits shall mature over the contractual lives of the financed projects which range between 24 to 60 months. The Morabaha/Tawarroq facilities are to be liquidated in monthly installments of varying amount between SR 420,000 to SR 13 million per month with certain projects loans repayable upon collection of the contract proceeds. The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects.