Al Arabia inks SAR 1.1 bln syndicated Murabaha facility

Arabian Contracting Services Co. (Al Arabia) signed a long-term Murabaha facility agreement with a number of banks at a total value of SAR 1.05 billion, according to a statement to Tadawul. 

The syndicated loan facility will go towards financing the acquisition of Faden Media. 

Banque Saudi Fransi (BSF), Al Rajhi Bank, and Saudi Awwal Bank (SAB), contributed SAR 350 million each towards the Murabaha facility.

The facility will extend for 7.5 years, and the repayment will be as per the terms of the agreement and no later than 90 months from the signing date.  

It will be guaranteed with a SAR-denominated promissory note in an amount equal to the facility limit and another one in an amount equal to the estimated Murabaha gains, estimated by the facility agent, to be payable by the company within the following 12 months. 

Source : Argaam