Tibbiyah waives SAR 100M in debt owed to Al Faisaliah Group

Logo of Arabian International Healthcare Holding Co. (Tibbiyah)

Arabian International Healthcare Holding Co. (Tibbiyah) signed today, March 27, a debt waiver of exepmtion agreement with Al Faisaliah Group Holding Co., the parent of Advanced Drug Company for Pharmaceuticals (a related party) which owns 75% of Tibbiyah.

Under the agreement, Tibbiyah was exempted from settling SAR 100 million of its SAR 130 million in short-term debt to Al Faisaliah Group, according to a Tadawul filing.

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The waived amount was originally provided by Al Faisaliah Group under a financing facility dated April 18, 2021.

Tibbiyah said the deal was signed after obtaining the board's approval. The move aligns with efforts to enhance financial sustainability and support its expansion and growth potential.

The company expects a tangible positive impact, including lower financing costs, stronger cash flows, and improved financial metrics. Improved leverage and a lower debt-to-equity ratio should reinforce its long-term growth trajectory.