Red Sea unit inks deal to raise financial facilities limit by SAR 160M

Logo of Red Sea International Co.

Red Sea International Co.’s subsidiary, Fundamental Installation for Electric Work Co. Ltd., signed an agreement to increase the limit of financial facilities with Saudi Awwal Bank (SAB) by SAR 160 million, bringing the total contract to SAR 456.11 million.

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In a statement to Tadawul, the company said that this increase changes the SAR 196.11 million agreement dated Jan. 7, 2024, and its amendment, dated Dec. 18, 2024, for SAR 100 million.

The purpose of these facilities is to increase the letter of credit limit for financing the import and purchase of goods, and for paying approved invoices related to one of the company's projects.

The financing period ends April 23, 2026.

The credit is covered by a promissory note worth SAR 456.11 million, signed by Fundamental Installation and the guarantors – Red Sea, MSB Holding One Person Co., Fares Esamet AlSaadi, and Zeyad Alsayegh.

This is in addition to a personal guarantee of SAR 22.35 million signed by Zeyad Alsayegh and a personal guarantee of SAR 44.7 million from Fares Esamet AlSaadi.

The amount is also covered by a corporate guarantee for SAR 156.44 million by MSB Holding, and a corporate guarantee for SAR 232.61 million from Red Sea, both supported by partners/board resolutions, along with audited financial reports.