Red Sea subsidiary renews SAR 238M credit facility with Riyad Bank

Red Sea International Co.’s subsidiary, Fundamental Installation for Electric Work Co. (First Fix), renewed a three-year Shariah-compliant credit facility with Riyad Bank for SAR 237.88 million, effective Aug. 6, 2024, according to a Tadawul statement.

This renewal follows the previous agreement signed on April 7, 2021, and expired on April 7, 2024.

The financing guarantees include a SAR 250 million promissory note signed by First Fix and guarantors: MSB Holding One Person Co., Innovative Contractors for Advanced Dimensions, Red Sea, Mohammed Saleh Mohammed Binladin, each for SAR 250 million, and Zeyad Al Sayegh for SAR 12.25 million.

Additional guarantees include personal guarantees of SAR 237.88 million from Mohammed Binladin and SAR 11.66 million from Al Sayegh. Corporate guarantees of SAR 237.88 million each provided by Innovative Contractors, MSB Holding One Person, and Red Sea, backed by partner/board resolutions.

The facility aims to provide guarantees, such as preliminary, advance payment, final, and performance guarantees, along with deferred documentary credits and extraction financing.

Red Sea and MSB Holding are related parties in this transaction.