RIYADH: Saudi modular building solution provider Red Sea International has sealed a SR330 million ($87.9 million) financing deal with Al Rajhi Bank. The arrangement includes a SR250 million loan to facilitate RSI’s acquisition of a 51 percent stake in the Fundamental Installation for Electric Work Co. Ltd., also known as First Fix.
The agreement is valid until the completion of the acquisition process, with a repayment tenure of seven years, providing both RSI and Al Rajhi Bank with financial clarity, according to a bourse filing.
Guarantees for the financing include a pledge of shares in RSI’s sister company and First Fix.
RSI has also allocated project proceeds to cover the loan’s annual repayment, including interest, and has provided a promissory note under the agreement, backed by one of its sister companies, noted the filing.
The deal involves related parties Al-Dabbagh Group, Tanmiah Commercial Group, and Petromin Corp.
In June, RSI announced the acquisition of 51 percent of the share capital of First Fix through cash consideration.
“RSI will gain a critical stream of electromechanical construction capability which are very crucial to every single client need,” said RSI CEO Khalid Fagih in a statement issued during the stake buyout.
Established in 2014, First Fix is a Saudi construction firm with over 190 top projects, offering integrated design, engineering, and construction disciplines in mechanical, electrical, and plumbing.
In another development, Al Rajhi Bank, in August, entered into an agreement with the National Center for Privatization to enhance public-private partnerships.
The deal aims to create opportunities for local and international investors in privatization initiatives. It also involves market research, financial guidance, local and international marketing consultancy, events management, training programs, and knowledge development.
The deal was signed by Hani Al-Saigh, vice president for strategic marketing and knowledge management at the NCP, and Hossam Al-Basrawi, general manager of corporate banking at Al Rajhi Bank.
