SHL Finance Company has renewed a Sharia-compliant credit facility agreement with Arab National Bank, securing a major financial boost of SAR 1.91 billion. This move is aimed at increasing the company’s sales volume and accelerating its long-term growth.
Why This Matters
This renewed facility is a crucial step for SHL Finance as it strengthens its ability to offer more financial solutions in a competitive market. The agreement, effective from July 8, 2024, will remain in place until April 30, 2025. The deal is backed by a promissory note covering the full amount and an assignment of receivables to secure 105% of the outstanding balance, ensuring strong financial backing.
A Strategic Growth Move
The company is focused on using these funds to expand its operations, enhance its market presence, and serve a broader customer base. SHL Finance confirmed that this renewal is a routine annual process and follows standard commercial conditions, with no special advantages.
Insider Connection?
An interesting aspect of this agreement is that Obaid Abdullah Alrasheed, the Managing Director and CEO of Arab National Bank, has an indirect interest in the transaction. However, SHL Finance has assured that this deal follows industry norms and remains a standard business renewal.
Strong Financial Performance
SHL Finance is already on an upward trajectory. In the first nine months of 2024, the company reported a 60.72% increase in net profit, reaching SAR 15.76 million. The company’s total assets also grew by 3.73%, surpassing SAR 4.5 billion as of September 30, 2024.
More Funds for Future Growth
Apart from this renewed facility, SHL Finance recently secured an additional SAR 311.9 million Sharia-compliant credit facility from Bank Albilad. This separate agreement, valid until May 21, 2025, is also backed by a promissory note and assigned accounts receivable. The additional funds will help the company expand its lending portfolio and attract more customers.
Final Thoughts
With this renewed facility and additional financing, SHL Finance is positioning itself for significant growth. The company is strengthening its financial foundation, increasing its market influence, and preparing to expand further. This move signals confidence in the company’s future, making it a key player to watch in the financial sector.
