Red Sea subsidiary increases SAB credit facilities by SAR 100M

Red Sea International Co.’s (RSI) subsidiary, Fundamental Installation for Electric Work Co., signed an agreement to increase the limit of its credit facilities with Saudi Awwal Bank (SAB) by SAR 100 million, according to a statement to Tadawul. 

Accordingly, the total value of the facilities will reach SAR 296.11 million.

The financing period will extend until Dec. 18, 2025.

The financing will be guaranteed by a promissory note of SAR 296.10 million signed by Fundamental Installation for Electric Work, Red Sea International, MSB Holding, Fares Esamet Al-Saadi, and Zeyad Al-Sayegh.

In addition, personal guarantees of SAR 14.50 million and SAR 29.01 million were given by Al-Sayegh and Al-Saadi, respectively. MSB Holding and Red Sea International submitted corporate guarantees of SAR 101.56 million and SAR 151.01 million, respectively.

These facilities will increase the limit of letters of credit to finance importing and purchasing goods related to one of the company's projects.

Fundamental Installation for Electric Work is a local company and a standalone mechanical, electrical, and plumbing (MEP) contractor, delivering world-class projects via end-to-end solutions that provide integrated design, engineering and construction services in MEP works.

An amendment was annexed to the deal signed between both parties on Jan. 7, 2024, at SAR 196.11 million, the statement said.