Outdoor advertising firm Arabian Contracting Services (Al Arabia OOH) lined up a SAR 972 mn Sharia-compliant loan with the Saudi Awwal Bank (Sab), it said in a disclosure to Tadawul yesterday.

The details: The eight-year facility — backed by promissory notes — will be allocated to refinancing an acquisition loan for wholly-owned unit Faden Media, among other outstanding loans. The move comes in a bid to reduce financing costs and bolster financial performance, the lender said.

REMEMBER- Al Arabia fully acquired homegrown advertising agency Faden Media for SAR 1.05 bn in 2023.

Watch out for Al Arabia: CI capital named Al Arabia as one of six Saudi stocks highlighted among the region’s top 20 picks for the year. The outfit currently has the largest share in the local advertising market, which is expected to hit 85% this year as the company doubles down on new prospects in the real estate, culture, sports, and airports sectors.

IN OTHER DEBT NEWS-

Alkhorayef Water and Power Technologies topped up existing Shariah-compliant credit facilities with Alinma Bank to SAR 630 mn from SAR 250 mn, while the security provided for the loan under the promissory note has been adjusted to SAR 693 mn, according to a disclosure to Tadawul. The original facility — signed in December 2021 — was aimed at financing government and semi-government contracts, issuing guarantees, and supporting invoice financing and new projects, according to an earlier disclosure.

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