Arabian Contracting Services signs a long-term Murabaha Facilities Agreement through 3 banks at SAR 1.05 billion

Arabian Contracting Services Co. announced that it signed a long-term Murabaha Facilities agreement in compliance with Islamic Sharia in the amount of SAR 1.05 billion to finance the procedures of the full acquisition of Faden Media.

The company stated on Monday on Tadawul that the financing parties were 3 different banks, which were divided equally among them, as follows:

1- SAR 350 million from Banque Saudi Fransi.

2- SAR 350 million from Al-Rajhi Bank.

3- SAR 350 million from SAB Bank.

The company noted that the agreement is a Murabaha Facilities agreement with a duration of 7.5 years, the repayment will be as per the terms of the facility agreement and no later than 90 months from the signing date.

Adding that the guarantees offered for the financing are:

1- A Promissory Note (the Principal Note) denominated in Saudi Arabian Riyals in an amount equal to the facility limit.

2- A Promissory Note (the Murabaha Profit Note) in an amount equal to the estimated Murabaha Profit estimated by the Facility Agent to be payable by the Company within the immediately succeeding twelve-month period.

3- Shares Pledge Agreement between the Security Agent (Banque Saudi Fransi), Arabian Contracting Services Co., and Faden Media for the pledge of Arabian Contracting Services Company’s shares in Faden Media (acquired entity).