Saudi hardware retailer and wholesaler signs 100 mln riyals Islamic financing

The Saudi Company for Hardware has signed 100 million riyals ($26.67 million) worth of Islamic financing.

The five-year Shariah-compliant facilities were obtained from Gulf International Bank, said the retailer and wholesaler of hardware in a Saudi stock exchange filing on Thursday (Dec 19).

The financing will go towards working capital and capital expenditure requirements as well as to settle other bank loans, said the company.

SACO Hardware also obtained Islamic financing in November, a seven-year 330.907 million riyals facility from Saudi British Bank it said would go to working capital and capital expenditure.

The company posted 14.64 million riyals in net profit for July-September, a decrease of some 40% compared to the same quarter in 2018. It attributed the drop to increases in general and administrative expenses, finance cost, zakat expenses, and a decrease in Other Income. 

($1 = 3.75 Saudi riyals)