Leejam renews, increases SAR 960M credit facilities with SAB

A branch of Leejam

Leejam Sports Co. said it renewed and increased its Shariah-compliant credit facilities with Saudi Awwal Bank (SAB) to SAR 960 million to fund capital and investment spending for future expansions and meet working capital needs.

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The package includes a SAR 794 million medium-term Murabaha loan to finance expansion-related capital and investment expenditures, a SAR 50 million short-term loan for working capital, and SAR 116 million for bank guarantees and letters of credit, the company said in a statement to Tadawul.

The medium-term facilities have a five-year term with a one-year grace period, while the short-term facilities mature in six months. Bank guarantees and letters of credit carry terms of one to three years.

Leejam said the financing is backed by promissory notes equal to the value of the facilities and involves no related parties.