Riyadh – Mubasher: Scientific & Medical Equipment House Company has renewed its Sharia-compliant credit facility agreement with Arab National Bank (ANB) after it was finalized and signed on 18 June 2026, according to a bourse filing.
The financing agreement provides the company with a credit limit of SAR 120 million, aiming to bolster the Scientific & Medical Equipment House’s operational capacity and support its various project-related commitments within the Kingdom of Saudi Arabia.
The facility is structured to adhere strictly to the principles of Islamic Sharia, ensuring that the financing mechanisms align with the ethical and legal standards required for such transactions in the Saudi market.
Under the terms of the renewal, the credit facility will remain available to the company until 31 January 2027. This duration allows the firm to plan its capital expenditures and project financing with a clear horizon, ensuring that its liquidity needs are met for the duration of its current fiscal cycles.
To secure the credit line, the company provided a comprehensive package of guarantees to ANB, including the formal assignment of proceeds from the company’s various service and supply contracts. By pledging these contract revenues, the company provides the lender with a direct claim on future cash flows, which serves as a primary form of collateral.
In addition to the assignment of proceeds, the company has issued promissory notes totaling the full value of the facility, SAR 120 million, as a further legal commitment to the repayment of the debt.
The strategic objective behind the renewal of this facility is multifaceted. The company intends to finance its existing portfolio of projects as well as future ventures that may be secured during the facility's term.
Furthermore, the credit line is designated for the issuance of bank guarantees and letters of credit. These financial instruments are critical for a company operating in the scientific and medical equipment sector, as they are often required to participate in government tenders and to facilitate the international procurement of specialized medical technology.
In terms of corporate governance and transparency, the company has explicitly stated that there are no related parties involved in this transaction.
The agreement was negotiated on a purely commercial basis between the company and the bank, ensuring that no directors or major shareholders have a direct or indirect interest in the facility beyond their standard roles within the firm.
The successful renewal of this credit facility underscores the company's ongoing ability to access the Saudi debt capital markets.
Earlier in June, the company’s shareholders approved a SAR 30 million dividend payout and approved a significant volume of related party transactions.
