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Thu 5 Jun 2014 01:42 PM

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Saudi retailer signs $266m loan to fund expansion

Fawaz Abdulaziz Alhokair Co says Islamic facility will also help company to repay existing loans

Saudi retailer signs $266m loan to fund expansion
Saudi shoppers. (Photo for illustrative purposes only)

Saudi Arabian retailer Fawaz Abdulaziz Alhokair Co has signed a SR1 billion ($266.6 million) Islamic loan maturing in March 2021, it said on Thursday, to help repay loans and fund expansion.

The loan is repayable by semi-annual instalments starting 18 months from June 4, the date of agreement, a bourse statement said.

Samba Financial Group's investment banking arm arranged the loan, while Gulf International Bank, National Commercial Bank, Arab Bank, Saudi Hollandi Bank and National Bank of Kuwait are participating lenders, the statement added.

Alhokair, the Saudi Arabian retailer which franchises brands such as Zara and Marks and Spencer in the kingdom, said last week it plans to issue a debut riyal-denominated sukuk.

The firm operates across 20 markets, predominantly in the Middle East and Commonwealth of Independent States, and has been expanding both on its own and through acquisitions - including the purchase of Spanish clothing brand Blanco earlier this year.

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