, Dubai, UAE– Building on the confidence and recognition Bahra Advanced Cable Manufacturing Co. Ltd. had with the local banks, the company added a new entry to its record of achievements by obtaining the confidence and recognition of international banks, where the company got an Islamic financing for the sum of $265 million from Standard Chartered, out of which $200 million for short-term Islamic structured financing solution for funding its inventory and sales, and $65 million as a 5-years long-term loan to finance the company’s expansions.
The first facility is a short-term structured Islamic financing to finance inventory and sales (warehouse and export invoice structured finance) to finance the working capital of Bahra Cables Company and it is the first of its kind in Saudi Arabia.
In this regard, Stephan Riekert, director, solution structuring team, transaction banking at Standard Chartered, explained that what’s unique is that the deal involves an Islamic (musawama) ownership structure that differs from standard forms where the inventory would be bought from the client and sold immediately with a deferred payment term.
Meanwhile, Talal Idriss, CEO of Bahra Cables Company, said: “Getting such two facilities from an international bank like Standard Chartered is considered an international certificate and testimony of the company’s position being one of the largest cable producers in Saudi Arabia, and confirms the approach and plans it follows since its foundation, which successfully led the company to supply and participate in several mega projects inside and outside Saudi Arabia.”
Idriss added that the $200 million financing will help Bahra Cables to proceed forward in increasing its production and distributing in new markets.
The Company, as well, is ISO 9001: 2008 certified for its medium and high voltage cables up to 132 KV.
Originally published on www.arabnews.com