Riyadh – Mubasher: Keir International Company recently announced the renewal of its Sharia-compliant financing agreement with Saudi Awwal Bank (SAB) at a value of SAR 155 million, according to a bourse filing.
The funding is designed to support the company’s ongoing operational requirements and project execution capabilities.
This renewal reflects the company’s continued reliance on Islamic banking structures to manage its working capital and project-related financial obligations.
The agreement was finalized and signed on 29 June 2026, while the duration of the renewed facility is set for one calendar year.
This short-term credit arrangement is a standard component of the company’s financial strategy, ensuring liquidity for its medium-term contractual commitments.
The primary objective of the financing is to provide the necessary fiscal support for Keir International’s current project portfolio.
Specifically, the funds will be utilized to facilitate the issuance of letters of credit, which are essential for the procurement of materials and services required for large-scale infrastructure and technology projects.
Furthermore, the agreement includes the renewal of bank guarantee facilities.
These guarantees are critical for the company to meet its performance obligations and tender requirements for various projects within the Kingdom’s expanding industrial and digital sectors.
To secure the facility, Keir International has provided a comprehensive package of guarantees to SAB. These securities include the formal assignment of proceeds from specific projects to the bank, ensuring a direct repayment mechanism from the company’s revenue streams.
Additionally, the company has issued a promissory note for the full value of the facility.
The credit line is further bolstered by corporate and personal guarantees, specifically a guarantee from Irad Holding Company and a personal guarantee from Mohammed bin Ali Al Dhalaan.
These multi-layered security measures are typical for credit facilities of this scale in the Saudi market, providing the lender with significant recourse.
Keir International has clarified that this renewal is part of its ordinary course of business. The company emphasized that the agreement represents a continuation of its existing relationship with SAB and is conducted under standard commercial terms. The disclosure also confirmed that there are no related parties involved in the transaction, ensuring that the renewal was conducted on an arm’s length basis.
