Saudi Arabian construction firm Abdullah Abdul Mohsin Al Khodari and Sons has announced the renewal of Islamic credit agreement with Riyad Bank, a leading financial institution in the kingdom.

The SR231.4 million ($61.6 million) funding will be used to provide bonding commitments and fund capital requirements and working capital needs for the company's general purposes and specific projects, the company said in a statement to the Saudi bourse.

The modes of utilisation are tawarroq, progress payment, multi bonds, documentary credit and murabaha financing and it will be repaid by February 2021.

The credit facilities renewed by Riyad Bank comprise 63 per cent murabaha and 37 per cent multi bonds and documentary credit, said the statement.

The facilities are secured by promissory note and assignment of the contract proceeds of the financed projects, it added.-TradeArabia News Service