Red Sea International unit renews SAR 439.6M banking facilities

Red Sea International renewed banking facilities worth SAR 439.6 million for its subsidiary through agreements with Alinma Bank and Riyad Bank extending to 2028

Red Sea International Co.’s subsidiary, Fundamental Installation for Electric Work Co. (First Fix), signed two banking facilities agreements with Alinma Bank and Riyad Bank with a combined value of SAR 439.6 million, according to two separate statements to Tadawul.

The first agreement, signed with Alinma Bank, runs until June 30, 2028, and renews a previous facility for three years while maintaining the credit limit at SAR 230 million.

The facility is secured by several guarantees, including a SAR 230 million promissory note signed by First Fix and guaranteed by Red Sea International, MSB Holding, Fares Al Saadi, and Zeyad Al Sayegh.

It is also backed by a SAR 23 million promissory note signed by First Fix and guaranteed by the same parties, personal guarantees of SAR 230 million each from Zeyad Al Sayegh and Fares Al Saadi, corporate guarantees of SAR 230 million from Red Sea International and MSB Holding, and partners’ and board of directors’ resolutions.

The second agreement runs until Oct. 20, 2028, and renews a previous facility for three years. At the company’s request, the facility value was reduced to SAR 209.6 million from SAR 237.9 million under the previous agreement dated Nov. 13, 2024.

This facility is secured by a promissory note of SAR 217.4 million signed by First Fix and guaranteed by MSB Holding, ICAD, Red Sea International, and Mohammed Binladin, in addition to a personal guarantee of SAR 10.7 million from Zeyad Al Sayegh.

The financial facilities will be used to issue final performance and advance payment guarantees, as well as to obtain financing for standard letters of credit, both at sight and deferred.

The company said the transactions include related parties, namely Red Sea International and MSB Holding.

First Fix is a leading player in the local market and one of the best independent electrical and mechanical engineering contractors, delivering world-class projects through comprehensive solutions that provide integrated design, engineering, and construction services in the mechanical and electrical works sector.