Sumou signs SAR 86.5M credit facility with SAB

Sumou says 3-year facility from SAB was obtained on Sept. 8

Sumou Real Estate Co. signed a Shariah-compliant facility worth SAR 86.5 million with Saudi Awwal Bank (SAB), according to a Tadawul statement.

For more news on listed companies

The facility is intended to finance Areem Makkah project and to issue a bank guarantee, in accordance with the contract signed between Sumou and National Housing Co. (NHC) for the development of residential units in Makkah.

The three-year contract was secured on Sept. 8, the company noted, adding that the facility is guaranteed by assignment of project receivables and a promissory note.

There are no related parties to the deal, the statement added.

In May, Sumou signed an agreement with NHC to develop Areem Makkah project on the land plots allocated to Sumou within Makkah Gate project.

The total estimated value of the project stands at SAR 680 million (excluding VAT).