SGS signs SAR 1.5 bln credit facilities with Bank Albilad, NCB

Saudi Ground Services Co. (SGS) signed two credit facility agreements worth SAR 1.5 billion with Bank Albilad and National Commercial Bank (NCB), the firm said in separate bourse statements on Thursday, Sept. 17.

Both agreements provide SGS a reserve source of liquidity, as the ground services handling firm will be able to draw down cash upon request at a maximum limit of SAR 750 million with Bank Albilad and SAR 750 million with NCB.

They would also provide the company with the required agility to mitigate the impact of the pandemic on funding the working capital requirements, while continuing with the expansion and growth initiatives.

The facilities, which were received on Sept. 15, have a term of 36 months each and are secured by promissory notes.

The finance will be used to support liquidity and meet the working capital requirements, SGS added.

“To achieve the optimum utilization of the agreement and to avoid unnecessary cost, the company will review the forecasted six-month working capital requirements on a monthly basis, and will only drawdown from this agreement to cover the working capital requirements to support its operations in accordance with the review,” SGS explained.