Arabian Contracting Services Secures $259M Financing from SAB
Deal News | Feb 03, 2025 | Zawya
Arabian Contracting Services Co. (Al Arabia) has secured a long-term Sharia-compliant credit facility amounting to 972 million Saudi riyals ($259.2 million) from Saudi Awwal Bank (SAB). This financing move is aimed at reducing the acquisition cost of Riyadh-based Faden Media, which was purchased for SAR 1.05 billion in November 2023. The eight-year facility, according to Al Arabia's statement to the Saudi stock exchange, will help lower finance costs and boost profitability. The credit arrangement aligns with Al Arabia's strategic focus on forming alliances and partnerships to enhance its market share at local and regional levels. Specific terms of the deal remain undisclosed.
Sectors
- Financial Services
- Media and Entertainment
- Construction and Contracting
Geography
- Saudi Arabia – The primary geography involved as both Al Arabia and SAB are based here, and the financial activities are centered in this region.
Industry
- Financial Services – This sector is relevant due to the involvement of Saudi Awwal Bank in providing financing.
- Media and Entertainment – Faden Media operates within this sector, making it a key element of the acquisition.
- Construction and Contracting – Arabian Contracting Services operates within this industry segment.
Financials
- $259.2 million – The amount of the Sharia-compliant credit facility provided to Al Arabia by SAB.
- SAR 1.05 billion – The acquisition cost for Faden Media by Al Arabia.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arabian Contracting Services Co. (Al Arabia) | Acquirer | Company | A contracting company in Saudi Arabia that acquired Faden Media for SAR 1.05 billion. |
| Saudi Awwal Bank (SAB) | Lender | Company | A financial institution providing a $259.2 million refinancing to Al Arabia. |
| Faden Media | Target Company | Company | A Riyadh-based media company acquired by Al Arabia. |