ProMedEx: Multi-purpose financing contract renewed with Saudi Fransi and raised to SAR 50 mln

Professional Medical Expertise Company, also known as “ProMedEx” announced on Tuesday the launch of the renewal and increase of the financial facilities contract with the Banque Saudi Fransi, as the renewal of the facilities was approved for last year in a total amount of 40 million Saudi riyals, as well as the approval to increase the facilities by the amount of 10 millions of Saudi riyals, bringing the total value of the facilities contract to 50 million Saudi riyals.

It is worth noting that the facilities contract is a multi-Purpose contract (with various limits), which allows the company to use the appropriate limit according to the company’s need and the requirements of the Saudi market to cover existing and future projects.

In order for the renewal and increase of the financing contract agreement to become effective, which is required for the continued use of financing and which ensures the sustainability and expansion of the company’s business, the following securities and additional documents have been submitted:

1. A request note for payment upon sight in the amount of 50,000,000.00 Saudi riyals covering the total facilities mentioned in the counter with a guarantee:

a. A request note for a total of 32,135,000.00 Saudi Riyals from Messrs. Al-Omran Holding Company to cover 64.27% of the total facilities mentioned above.

B. A request note totaling 2,865,000.00 Saudi Riyals from Mr. Riyad Abdullah Rashid Abunayyan covering 5.73% of the total facilities mentioned above.

2. Institutional guarantees in the amount of 32,135,000.00 Saudi riyals from Messrs. Al-Omran Holding Company covering 64.27% of the total facilities mentioned above.

3. Personal guarantees in the amount of 2,865,000.00 Saudi Riyals from Mr. Riyad Abdullah Rashid Abunayyan covering 5.73% of the total facilities mentioned above.

4. General waiver of all dues from government agencies.

5. Tawarruq financing agreement.

The Purpose of the financing will be to finance suppliers’ purchase orders to import goods. Also, It will also include covering the issuance of final guarantees for local projects.

The facilities contract will be valid for use until 31st of August, 2024.

According to the published statement on Tadawul the Renewing and increasing the facilities contract according to the following data:

1. Renewing the facilities contract for last year, which had a total facilities contract value of 40 million Saudi riyals, with an increase of 10 million Saudi riyals, thus bringing the total facilities contract to an amount of 50 million Saudi riyals.

2. The facilities contract includes a variety of facilities that will enable the company to use it according to the company’s need to cover existing and new projects, which include:

A. Financing to pay suppliers’ merchandise invoices at a rate of 80% of the total supplier invoices, with a maximum financing limit of 40 million Saudi riyals.

B. Islamic letter of credit with a maximum value of 25 million Saudi riyals.

C. Multiple imports with a maximum financing limit of 40 million Saudi riyals.

D. Bidding bonds (bank guarantees) with a maximum financing limit of 6 million Saudi riyals.

E. Payment guarantees with a maximum financing limit of 10 million Saudi riyals.

3. The facilities contract will be valid with Banque Saudi Fransi until 31st of August, 2024.