CATRION Catering Holding Company has signed a Sharia-compliant credit facility deal with Saudi Awwal Bank (SAB) for SAR 221 million.
CATRION Catering Services LLC, a subsidiary, secured the funding on 16 September 2024, as revealed in a bourse disclosure.
Out of the total, SAR 209 million will fund the Red Sea catering project, while SAR 12 million will cover the value-added tax during construction.
The loan has a tenure of 15.5 years, including a grace period of 13.5 months for project financing.
The agreement is backed by a debt service undertaking from the parent company and a promissory note from CATRION Catering Services.
In the first half of 2024, CATRION’s net profits increased by 19.48% to SAR 144.41 million, compared to SAR 120.85 million in the same period of the previous year.
Meanwhile, SAB reported net profits of SAR 4.06 billion as of 30 June 2024, marking a 22.54% rise from SAR 3.31 billion year-on-year.