Al Arabia signs SAR 972M credit facility with SAB

Logo of Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co. (Al Arabia) obtained today, Feb. 3, a long-term Shariah-compliant facility worth SAR 972 million from Saudi Awwal Bank (SAB), according to a Tadawul statement.

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The facility will refinance the acquisition loan for Faden Media Co., in line with Al Arabia’s strategy to cut financing costs and boost profitability.

The loan has an eight-year tenor and is secured by a promissory note. The company confirmed that there are no related parties, the statement added.

Al Arabia secured the refinancing at lower costs than its previous facility while settling outstanding debts with other banks. This aligns with its financial strategy to optimize costs, including financing expenses.

The company aims to improve profitability and cost efficiency, ensuring a strong financial position and delivering long-term value to shareholders.