SGS secures bank facilities with SNB, BSF up to SAR 850M
Saudi Ground Services Co. (SGS) signed two Shariah-compliant bank facilities agreements with Saudi National Bank (SNB) and Banque Saudi Fransi (BSF) up to SAR 550 million and SAR 300 million, respectively.
The funds can be drawn when needed, SGS said in a statement to Tadawul.
SNB facility was secured on May 11 and is valid until Dec. 31, 2027. Financing from BSF was issued on May 15 and will be available until April 30, 2026 (extendable for one year).
SNB credit is aimed at supporting liquidity position to fund working capital requirements when needed, up to SAR 450 million. The non-funded part of SAR 100 million covers the contractual agreements for the company.
Both deals are intended to provide a flexible source of funding for the working capital requirement when needed, which in turn will help achieving the balanced liquidity policy that the company has developed as one of the precautionary measures to support the liquidity position.
The agreements would assist with financing the working capital requirements if needed while continuing with the expansion and growth strategic initiatives to grow the company and elevate the quality of services.
The deals reflect the quality of the company's credit rating and the banking confidence in the company's capabilities and financial position, along with the strength of the ground services industry in the Kingdom.
To achieve the optimum utilization of the agreements and to avoid unnecessary cost, the company will review the working capital requirements on a monthly basis and will drawdown only when needed, the statements added.
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