Red Sea Subsidiary Secures SAR 456.1 Mln Financing Limit Increase from SAB

Red Sea International Co. announced on Thursday that its subsidiary, Fundamental Installations for Electrical Work Co. Ltd, signed an agreement with the Saudi Awwal Bank (SAB) to raise its financial facility limit by SAR 456.1 million, extending until April 23, 2026.

The company stated that the SAR 160,000,000 increase represents a new addendum to the financial facilities agreement originally signed between the parties on January 07, 2024, for a value of SAR 196,107,000, and subsequently amended through an addendum dated December 18, 2024, valued at SAR 100,000,000.

According to a statement on Tadawul, the financial facility aims to increase the limit of regular documentary credits (sight and deferred) to finance the import and purchase of goods and to finance the payment of accepted invoices related to one of the company’s projects.

The guarantees provided for the financing will be a promissory note in the amount of SAR 456,107,000 signed by Fundamental Installations for Electrical Work Co. Ltd, and the guarantors are Red Sea International Co., MSB Holding One Person Co., a sole proprietorship, Fares Esamet Abd Alsamed AlSaadi, and Zeyad Jean Alsayegh.

– A personal guarantee for SAR 22.35 million from Zeyad Jean Alsayegh.

– A personal guarantee for SAR 44.7 million from Fares Esamet Abd Alsamed AlSaadi.

– A corporate guarantee of SAR 156.4 million from MSB Holding One Person Co. and SAR 232.6 million from Red Sea International Co., supported by a resolution from the partners/Board of Directors, in addition to the audited financial reports.

It is worth noting that the Fundamental Installations for Electrical Work Co. Ltd is a leading company in the local market and one of the best standalone MEP contractors, delivering world-class projects through comprehensive solutions that provide integrated design, engineering, and construction services in the field of mechanical and electrical works.

Related Parties: Red Sea International Co. and MSB Holding One Person Co.