DUBAI - Fawaz Abdulaziz Alhokair & Co has raised a 1.125 billion riyal ($300 million) Islamic loan with a group of regional banks, a month after concluding a much larger facility for one of its businesses.
The Saudi-listed retail company signed a new mudarabah loan agreement with National Commercial Bank, Samba Financial Group and Abu Dhabi Islamic Bank, it said on Thursday.
The loan will be used to repay the outstanding balance on a 1 billion riyal syndicated loan obtained in 2014 and 500 million riyals in sukuk issued in the same year and due in 2019.
The new debt facility has a seven-year maturity, the company said in a stock exchange announcement.
Confirming what sources had told Reuters, the Saudi firm last month said that it had concluded a 7.2 billion riyal Islamic loan for one of its businesses, Arabian Centres Company, to refinance existing debt and build new malls.
That transaction was one of the first debt facilities raised by a company owned by an individual detained in Saudi Arabia’s recent anti-draft initiative.
Fawaz Alhokair was one of hundreds of business people and officials detained for several months in a sweeping anti-corruption crackdown by Riyadh in November last year.
Many, including Alhokair, were released, but the move prompted increased caution among banks and in some cases delayed lending to companies with links to individuals involved.
The 7.2 billion loan was provided by Samba Financial Group, National Commercial Bank, Al Rajhi Bank and Arab National Bank. ($1 = 3.7500 riyals)
(Reporting by Davide Barbuscia Editing by David Goodman) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: email@example.com))