RIYADH: The Saudi Automotive Services Co. has signed an agreement for a Shariah-compliant loan worth SR375 million ($100 million) from Bank Albilad.
The 10-year deal comes as an extension to a SR504 million loan that was obtained earlier this year, from Riyad Bank.
Saudi-listed SASCO will use SR300 million of the funds to finance its most recent acquisition of gas station operator NAFT, a bourse filing revealed.
The remaining amount will be allocated to hedge against profit fluctuations, it added.
Amid expansion efforts, the firm had earlier closed a SR1.1 billion deal to acquire 80 percent of NAFT Services Limited Co., which has over 200 gas stations across the Kingdom.
SASCO operates car service stations, restaurants, and a gasoline transporter fleet. It also supplies spare parts for workshops.
