Knowledge City signs SAR 143 mln credit facility with Al Rajhi Bank

Knowledge Economic City Co. (KEC) signed on Sept. 17 a Shariah-compliant credit facility agreement worth SAR 143 million with Al Rajhi Bank.

Of the total, SAR 118 million will go towards the execution costs for ongoing project, and SAR 25 million to support working capital, KEC said in a statement to Tadawul.

Duration for the term loan for project financing is five years, including a grace period of first three years. The working capital facility will be rolled over on annual basis.

KEC provided land mortgage and promissory notes as main collateral to cover the facilities amount, the statement said.

Source : Argaam