SASCO Inks USD 134 Million Credit Facilities Agreement with Riyad Bank to Finance 80% of NAFT Purchase

Saudi Automotive Services Company (SASCO) and Riyad Bank have signed a SAR 504 million (USD 134 Million) Shariah-compliant facilities agreement on the 20th of February 2022, according to a statement released by the company to the Saudi Stock Exchange (Tadawul).

Why it Matters?

A portion of the financing will be used by SASCO for the acquisition of an 80% stake in Saudi-based NAFT Services Limited Co (NAFT) and hedging against fluctuations in floating interest rates and fixing rates. The deal will be financed using internal sources as well as bank facilities and is expected to reflect positively on profitability as of the second quarter of 2022 (2Q 2022). Repayment of the long-term financing extends over ten years with a 3-year grace period and a SAR 54 m...