Twareat renews SAR 58M Shariah-compliant facilities with Al Rajhi Bank

Twareat says the financing aims to support general working capital requirements, including capital expenditure

Twareat Medical Care Co. renewed, on Nov. 17, a SAR 58 million Shariah-compliant credit facility agreement with  Al Rajhi Bank.

The company said in a statement to Tadawul that the facility will be repaid within three to six months, adding that it may secure new facilities after repayment until the agreement expires on Aug. 31, 2026.

The agreement is backed by a promissory note covering the full value of the facilities, including profit charges.

The renewal includes a six-month working capital facility of SAR 20 million to finance general operating expenses. It will cover letters of credit, initial guarantee facilities, final guarantee and advance payment guarantees, import financing, and deferred sale facilities.

It also provides a revolving facility for capital expenditure financing of up to SAR 30 million for almost 60 months, covering import financing and the issuance of letters of credit.

Additionally, the agreement includes an overdraft facility of SAR 2 million for 12 months, a monthly-settlement credit card facility of SAR 1 million, and a hedging facility valued at SAR 5 million to mitigate profit-rate risks.

The financing aims to support general working capital requirements, as well as operating and capital spending, including the issuance of initial and final guarantees, advance payment guarantees, and financing for current and future projects, the statement said.