Saudi Ground Services Signs SAR 500 Million Murabahah Agreement with Saudi British Bank

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The Saudi Ground Services Company (SGS), Saudi Arabia’s leading aviation ground handling services company, signed a SAR 500 million (USD 133.3 million) Shariah-compliant Murabahah financing agreement with Saudi British Bank (SABB) on the 7th of July 2020.

According to a statement released on Tadawul, the credit facility, which was guaranteed by a promissory note, had a 30-month duration, and was required to support cash liquidity to cover working capital for operations. The loan would help mitigate the impact of the COVID-19 pandemic on SGS’s working capital requirements, whilst also enabling expansion and improvement of services.

The statement noted that the SGS Chairm...