SMC signs SAR 1.1B credit facility agreement with SAB

Specialized Medical Co. (SMC) signed a SAR 1.1 billion Shariah-compliant credit facility agreement with Saudi Awwal Bank (SAB) with competitive terms and conditions, according to a Tadawul statement.

The company obtained the credit facility on Oct. 15, which includes long-term facilities worth SAR 800 million for 144 months, and short-term facilities of SAR 300 million for eight months.

The facility will cover working capital requirements, the statement said.

The long-term facilities will be utilized in financing the construction of SMC 4 Hospital in Riyadh, while the short-term facilities will support the company’s working capital needs.

The facilities are guaranteed by a promissory note from the company and a mortgage on the land on which the new hospital will be built.

There are no related parties involved in the transaction, the statement said.