Tihama Advertising and Public Relations Co. agreed today, Nov. 22, on an early repayment of the existing Islamic Murabaha with White Door Holding Co., the company said in a bourse filing.
According to the agreement, Tihama will repay an amount of SAR 17.29 million out of the total outstanding debt of SAR 17.91 million, which will lead to financial savings of SAR 616,000.
The step is part of the management’s measures to restructure the company’s financial liabilities within the company’s framework strategy towards converting part of the short-term liabilities into medium-term.
This will contribute to improving the cash flow transactions, as a part of the two-year period medium-term fund was utilized to repay the outstanding financing, which would have been paid in quarterly installments ending on Dec. 15, 2021.
The medium-term fund was already disclosed by the company on Nov. 15, 2020, on Tadawul, it noted.
Related: Tihama inks SAR 20 mln credit facilities agreement with Samba
The agreement will also contribute to reducing Tihama’s financial costs during the coming fiscal periods, on lower profit rate of the new financing, compared to the profit rates of the existing Murabaha.
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