Mubasher: Seef Properties has concluded a Sharia-compliant Murabaha facility agreement worth BHD 4.5 million with Bahrain’s Ahli United Bank (AUB) to finance working capital requirements.
The agreement carries a maturity period up to two years, according to a statement to Bahrain Bourse (BHB) on Sunday.
Each drawdown shall have a maximum tenor of not more than 12 months and not less than six months from the drawdown date.
As for its impact, the facility will promote Seef Properties’ financial position via securing cash reserves. An additional current liability will be created on the balance sheet, along with higher financing costs on the company's profit and loss statement.
This facility "will be managed within appropriately controlled liquidity and leveraging ratios," the statement added.
It is noteworthy that in the fiscal year (FY) 2019, AUB’s net profits attributed to shareholders increased by 4.7% annually to stand at $730.5 million from $697.5 million.
