Alhokair agrees debt repayment schedule with banks, says CFO

Fawaz Abdulaziz Alhokair Co.’s (Alhokair) has reached a plan with banks to schedule repayment of its total debt pile of between SAR 3 and 4 billion, its chief financial officer, Mohammed Abbaoui, told CNBC Arabia.

The company will schedule its loan repayment over seven years, so that it will pay 10 percent of the total debt during the first year and increase payments gradually over the following years, he said.

It was agreed that Al-Hokair would not obtain loans during that seven-year period, he added.

In August, Alhokair signed a seven-year murabaha financing agreement worth SAR 1.25 billion with Al Rajhi Bank to repay its short-term loans, to be repaid gradually in semiannual installments, Argaam previously reported.