Saudi contractor Khodari wins key maintenance deal

Saudi Arabian contractor Abdullah Abdul Mohsin Al Khodari and Sons said it has won a SR69 million ($18.4 million) contract from the kingdom's Ministry of Environment, Water and Agriculture.

Under the 36-month contract, Khodari will provide maintenance for the Saudi water networks and their ancillaries, it said in a statement.

The financial impact of this project started during the third quarter of the fiscal year 2016.

In another development, Al Khodari has renewed its existing agreement with Al Bilad Bank for Islamic credit



facilities worth SR124.4 million ($33.1 million).

 

The purpose of these facilities was to provide bonding commitments and fund the working capital and capex requirements of the company.

About 42 per cent of the facilities are funded under Murabaha modes of financing, whereas 58 per cent limits are for multi-purpose bonds, said the Saudi contractor in a statement.

The credit agreement expires on October 11, 2017 however the credit limits shall mature over the contractual lives of the financed projects which ranges between 24 to 36 months.