United Electronics Company (eXtra) has successfully closed a Receivable Finance Murabaha Agreement (securitization) deal with Al Rajhi Bank worth SAR166 million, it said in a bourse statement.
The transaction is considered the first for the company as well as the first non-asset backed securitization transaction in Saudi Arabia, the company said in the statement.
This transaction is intended to secure diversified funding sources for eXtra, which in turn will reflect positively on the company’s key financial indicators and on its future credit rating, the statement added.
eXtra said the transaction will yield an instant cash inflow worth SAR 160 million that will be utilized for repayment of the Company’s indebtedness to the banks.
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