Red Sea subsidiary inks deal with SAB to raise facilities limit by SAR 65M

Red Sea International Co.’s (RSI) subsidiary, Fundamental Installation for Electric Work Co. Ltd., signed an agreement to increase its credit facilities limit with Saudi Awwal Bank (SAB) by SAR 65 million to SAR 196.10 million.

In a statement to Tadawul, the company said that the advance payment bond will be valid until Nov. 16, 2024, or upon advance payment recovery by the bank.

The performance bond will be valid for 24 months, which could be extended. However, there was no specific duration for payroll financing.

Meanwhile, letters of credit will be valid for one year from the date of the offer letter (Jan. 7, 2024).

The amount is covered by a promissory note worth SAR 196.11 million signed by Fundamental Installation and the guarantors. Additionally, a corporate guarantee of SAR 100.01 million from Red Sea is supported by partners/board resolutions. Moreover, a corporate guarantee of SAR 67.26 million from MSB Holding Co. (a single member LLC) is backed by partners/board resolutions, as well as a personal guarantee of SAR 19.21 million from Fares Esamet Abd Alsamed AlSaadi and another one amounting to SAR 9.6 million from Zeyad Alsayegh.

Fundamental Installation signed a facilities contract in September 2023 to issue the final and advance payment guarantees for AMAALA Triple Bay - Integrative Wellness Resort & Medical Residence. The additional financing is targeted towards funding the purchase and import of goods for the aforementioned project, in addition to payroll financing, the statement noted.