Red Sea subsidiary secures SAR 280M finance from SNB

Red Sea International Co. (RSI) said that its subsidiary, Fundamental Installation for Electric Work Co. Ltd. (First Fix), signed an Islamic funding and banking services agreement with Saudi National Bank (SNB) to secure SAR 280 million worth of credit facilities.

In a statement to Tadawul, RSI added that the finance term starts from Nov. 5, 2024, to April 30, 2025.

The company will use the funding to issue bid bonds, advance payment bonds, performance bonds, and retention bonds that may be required in its upcoming projects in addition to letter of credit facilities.

The funding is guaranteed by a promissory note signed by First Fix for SAR 280 million. This is divided into a SAR 142.8 million corporate guarantee provided by RSI, and another worth SAR 105.64 million by MSB Holding.

RSI and MSB Holding are related parties to the deal.