Fawaz Abdulaziz Alhokair has signed an Islamic term murabahah and revolving credit facility worth $800 million, the company said in a bourse filing on Monday (Mar 2).
The retailer is responsible for fashion retail brands in Saudi Arabia including Aldo, Mango, La Senza, and Pull & Bear, as well as F&B business Costa.
Alhokair said the $650 million murabahah is for seven years, and the $150 million revolving credit facility is for three years.
The agreement was made with a syndicate of banks Al Rajhi, National Commercial Bank, Samba Financial Group, Arab National Bank, Mashreqbank, and Abu Dhabi Commercial Bank.
The murabahah facility will be used to repay outstanding debt under an existing facility as well as its fees and costs.
“The transaction allows us to consolidate all our existing debt into one murabaha facility with more favourable terms and significantly reduces our cost of debt in a manner conducive to our long-term and ambitious growth strategy,” CEO Marwan Moukarzel said in a statement.
The revolving credit will be channeled towards general corporate and working capital purposes, said Alhokair.
*Para 4 of this story was corrected on Mar 5 when Fawaz Abdulaziz Alhokair announced that one of the syndicate banks was not Abu Dhabi Islamic Bank as originally stated but Abu Dhabi Commercial Bank.
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