The Clap
The Saudi Home Loans (1183) signed Sharia-compliant banking facilities agreements worth a total of SAR 815mn with the “Arab National Bank” (1080), and “Riyad Bank” (1010).
What
SHL indicated that the agreement with ANB amounts to a fixed-term tawarruq financing limit (on demand) of SAR 500mn for 5 years, while the Riyad Bank agreement is for a value of SAR 300mn for 3 years.
The limit of treasury products amounted to SAR 15mn.
So What
SHL explained that the aim of these financings is to expand and increase the volume of its sales in the coming period through new financing granted to clients.
Now What
The company stated that the agreement with ANB includes a related party, while there are no related parties in the agreement with Riyad Bank.
