EDARAT Signs SAR 18 Million Facility Agreement with SAB

Edarat Communication and Information Technology Co. (EDARAT) announced on Wednesday the signing of a bank facility agreement with the Saudi Awwal Bank (SAB), which is compatible with the provisions of Shari’ah, with a limit of 18 million riyals. The financing duration is 36 months for financing of CAPEX and 5 years for letters of guarantee to provide funded facilities to support the expansion plans of Edarat cloud infrastructure, in addition to non-funded facilities related to obtaining tender & performance bonds for new contracts.
Regarding the guarantees provided in exchange for the financing, the administration said in a statement today on “Tadawul” that they are represented by a promissory note issued by the Company.
It explained that the facility agreements include a medium-term loan with a tenor of 36 months and a total amount of 8 million riyals to finance capital expenditures, in addition to a facility limit related to the issuance of tender and performance bonds related to contracts for an amount of 4.5 million Saudi riyals and a tenor up to 5 years, in addition to short term financing of vendors’ invoices.