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03 March 2020

Fawaz Alhokair Group secures an $800 million financing facility

The Saudi retailer said that the facility leaves Fawaz Alhokair Group with a more optimised capital structure, allowing it to efficiently pursue its strategic objectives

The facility provides extends the company’s debt maturity profile/Bloomberg

by Kudakwashe Muzoriwa

Saudi Arabia’s Fawaz Abdulaziz Alhokair Company has signed a seven-year $800 million Murabahah financing facility and a three-year revolving credit facility agreement with a syndicate of regional banks.

The financing facility composes of two tranches, including a $650 million Murabaha to be fully utilized in refinancing existing debt and a $150 million revolving standby credit facility to finance the company’s operational and expansion needs.

Al Rajhi Bank, National Commercial Bank, Samba Financial Group and Arab National Bank participated in the loan agreement. Similarly, UAE’s Mashreq Bank and Abu Dhabi Islamic Bank were also part of the financers to the deal.

The facility also provides improved pricing and terms and conditions compared to the company’s current debt, while extending the company’s debt maturity profile.

Fawaz Alhokair Group’s Arabian Centres is set to raise as much as SAR 2.8 billion ($747 million) after pricing its initial public offering (IPO) at the bottom of its indicative range.

Arabian Centres was Saudi Arabia’s first under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the US.



RELATED STORIES: Arab National Bank Samba Financial Group National Commercial Bank Al Rajhi Bank Murabahah Fawaz Abdulaziz Alhokair Company Abu Dhabi Islamic Bank Mashreq Bank




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