Riyadh – Mubasher: Sinad Holding Company has announced the formal signing of a long-term Sharia-compliant banking facilities agreement with Alinma Bank, according to a bourse filing.
The credit facility is valued at SAR 300 million and is specifically structured to support the company’s strategic investment initiatives and provide the necessary liquidity for its general corporate operations over the coming years.
This Sharia-aligned framework ensures that the financing adheres to the ethical and regulatory standards prevalent in the Saudi financial market, which typically avoid interest-based lending in favor of profit-sharing or asset-backed structures.
According to the terms of the disclosure, the timeline for the financing is set to begin in the future. The company said that the funding was scheduled to be obtained on 11 June 2026.
Meanwhile, the facility is slated to remain in effect until 31 January 2029. A key feature of the agreement is its potential for extension, as the disclosure notes that the duration can be renewed upon the mutual agreement of both Sinad Holding and Alinma Bank. This provision offers the company significant financial flexibility as it manages its long-term capital requirements.
To secure the facility, Sinad Holding has provided a combination of financial guarantees. These include the issuance of a promissory note and the pledging of shares as collateral. Such security measures are standard for high-value corporate credit facilities in the Kingdom, providing the lending institution with necessary safeguards while allowing the borrowing company to leverage its asset base for growth.
The company has explicitly stated that the primary objective of this financing is to fund its general investments. By securing this substantial line of credit, Sinad Holding positions itself to pursue new opportunities or enhance its existing investment portfolio.
This move aligns with the company’s broader strategy of maintaining a robust financial position to support its long-term growth objectives within the Saudi economy.
In line with corporate governance and transparency regulations, Sinad Holding confirmed that there are no related parties involved in this transaction. The agreement was reached through independent negotiations between the holding company and Alinma Bank, ensuring that the terms reflect standard market conditions.
This agreement underscores the ongoing collaboration between Saudi industrial and investment firms and the domestic banking sector.
By leveraging Sharia-compliant financing from a major institution like Alinma Bank, Sinad Holding demonstrates a commitment to disciplined capital management. The facility provides a clear financial runway for the company to execute its investment mandate through 2029, reinforcing its operational stability and its capacity to contribute to the Kingdom's evolving investment landscape.
