Cenomi Retail gets SAR 1.58B term-loan with Emirates NBD

Cenomi Retail to provide 2 promissory notes and a corporate guarantee to Emirates NBD

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) signed term-loan agreements with Emirates NBD for SAR 1.58 billion, which is equivalent to the drawn amount under the credit facility agreement.

In a statement to Tadawul, the company said that two promissory notes will be provided by the company for SAR 1.68 billion, in addition to a corporate guarantee by Al-Futtaim Private Co. LLC for SAR 1.58 billion, which is provided in exchange for an agreed fee to be paid by the company.

The financing term is three years, the statement added.

The step aims at refinancing the short-term loan that was obtained earlier from the bank, the company added, noting that the applicable management and administration fees in connection with the loan, which is to be procured pursuant to the term-loan agreement, are to be paid by the company.

Al Futtaim Private is a related party as it is an affiliate of Al-Futtaim Retail Co.—a major shareholder in Cenomi Retail.

On Sept. 14, Cenomi Retail signed a SAR 1.6 billion credit facility deal with Emirates NBD-Saudi Arabia. The package was structured as a short-term loan to be refinanced within 90 days, with a two-year extension option at the bank’s discretion, Argaam reported.