|02 March, 2020

Saudi's Fawaz Abudulaziz Alhokair secures $800mln Islamic finance

The new facility is composed of two tranches, including a $650mln Murabaha and a $150mln revolving standby credit facility

Image used for illustrative purpose.

Image used for illustrative purpose.

Gettyimages

Saudi-listed retail group, Fawaz Abdulaziz Alhokair Company, has signed an Islamic term Murabaha facility and a revolving credit facility agreement with a syndicate of Saudi banks.

The $800 million debt facility is  composed of two tranches, including a $650 million Murabaha to be fully utilized in refinancing existing debt, and a $150 million revolving standby credit facility to finance the business’ operational and expansion needs.

The term Murabaha’s maturity is 7 years (subject to a 1-year grace period), while the revolving credit facility’s tenure is 3 years.

The banks participating in the loan agreement are: Al Rajhi Banking and Investment Corporation, the National Commercial Bank, Samba Financial Group, Arab National Bank, Mashreqbank, Abu Dhabi Islamic Bank.

“Our success in securing this new debt package is a vote of confidence in our Group by regional lending institutions, signifying its strong relationship with the Group’s strategic Saudi banking partners, while further diversifying our funding mix with the addition and retention of leading GCC Banks,” Marwan Moukarzel, Chief Executive Officer of Fawaz Abdulaziz Alhokair Company said.

(Writing by Gerard Aoun; editing by Seban Scaria)

(Gerard.Aoun@refinitiv.com)

#ISLAMICFINANCE #SAUDI #FINANCIALSERVICES #RETAIL #CREDIT

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