Saudi’s Fawaz Alhokair Signs $200m Islamic Loan With SocGen

Alhokair said on Thursday the facility will fund the acquisition and other expansion by the company

Saudi Arabia’s Fawaz Abdulaziz Alhokair Co signed a $200 million sharia-compliant loan with French lender Société Générale to fund an acquisition of shops and general expansion, the retailer said in a bourse filing on Thursday.

The firm, which franchises brands such as Zara and Marks and Spencer in the Kingdom, announced last week it was buying 42 women’s clothing shops from Al Dana Trading Group for SAR383 million ($102.1 million).

Alhokair said on Thursday the facility, which is extended over a five-year period and will be repaid on a quarterly basis after a year’s grace period, will fund the acquisition and other expansion by the company.

Shares in Alhokair rose 1.02 per cent to close at SAR120.25 per share on Thursday ahead of the announcement.

Originally published on www.gulfbusiness.com