Cenomi Retail obtains SAR 1.6 bn loan to refinance debt

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) has secured a SAR 1.6 bn credit facility from Emirates NBD Bank to prepay and settle its existing bank debts, it said in a disclosure to Tadawul yesterday.

The details: The facility includes a 90-day short-term loan, set to be repaid by a three-year term loan with a possible two-year extension at the bank’s discretion. It is backed by a SAR 1.6 bn promissory note from Cenomi and a SAR 1.6 bn corporate guarantee from Al Futtaim Private Company in exchange for a fee from Cenomi. The facility’s utilization rests on the completion of a private transaction that will see Al Futtaim Retail Company join Cenomi Retail’s shareholder base.

REMEMBER- Al Futtaim Group’s planned acquisition of a 49.95% stake in Cenomi Retail cleared a regulatory checkpoint last month, after receiving the greenlight from the General Authority for Competition. The two retail giants had inked a share purchase agreement for SAR 2.5 bn (USD 667 mn) in July. In addition to buying the stake from the founding Alhokair family shareholders, Al Futtaim will provide a SAR 1.3 bn loan to shore up Cenomi’s finances and fund its recovery.

Earnings snapshot: Cenomi Retail posted a SAR 85.3 mn net loss in 2Q 2025, a reversal from a SAR 84.1 mn net income in 2Q 2024. The loss was attributed to a drop in operating income and a rise in expenses, including FX losses and a tax settlement. Revenues fell 7% y-o-y to SAR 1.1 bn, as the sales boost from Ramadan fell entirely in the first quarter of this year.