RIYADH: The Saudi Automotive Services Co. signed an agreement for a Shariah-compliant loan worth SR504 million ($135 million) from Riyad Bank.

The long-term loan, obtained on Feb. 20, will be paid over a period of ten years, according to a bourse statement.

Saudi-listed SASCO will use SR450 million of the funds to finance its most recent acquisition of gas station operator NAFT, the statement said.

The remaining amount will be allocated to hedge against profit fluctuations, it added.

Amid expansion efforts, the firm had earlier closed a SR1.1 billion deal to acquire 80 percent of NAFT Services Limited Co., which has over 200 gas stations across the Kingdom.

SASCO operates car service stations, restaurants, and a gasoline transporter fleet. It also supplies spare parts for workshops. 

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