Mayar Holding Company, listed on the Saudi Stock Exchange, announced a strategic move to strengthen its financial position. Its two subsidiaries, Gulf Elevators and Escalators Company and Jadaya Investment Company, signed agreements to reschedule bank facilities with Saudi First Bank (SABB). The total value of these facilities is SAR 87.98 million, reflecting the confidence of financial institutions in the company's financial strength and future plans.
In an official statement published on the Saudi Stock Exchange (Tadawul) website on Tuesday, the company revealed that the new agreement converts existing short-term facilities into long-term, non-revolving facilities, fully compliant with Sharia principles. A flexible repayment schedule of seven and a half years has been agreed upon, with the amount to be repaid in 30 quarterly installments, the final installment due on May 31, 2033.
Regarding the guarantees provided in exchange for this rescheduling, Mayar Holding explained that they include mortgaging real estate instruments, in addition to providing a promissory note, a guarantee of solidarity and mutual support, and corporate guarantees, which provides strong credit coverage for the agreement.
Strategic objectives and financial impact
This move comes as part of the company's efforts to improve its working capital structure. From a financial and accounting perspective, converting short-term debt (due within one year) to long-term debt reduces current liabilities. This directly improves the company's liquidity ratios, giving management greater flexibility in managing cash flow and directing resources toward operational activities and growth projects, rather than the pressure of immediate repayment.
Sector context and economic environment
Financial restructuring and debt rescheduling are effective tools used by major companies in financial markets to ensure the sustainability of their operations, especially in light of global economic changes. The collaboration between Saudi First Bank (SABB) and Mayar Holding Group reflects the vital role of the Saudi banking sector in supporting private sector companies and enabling them to overcome operational challenges, in line with the objectives of the Kingdom's Vision 2030 to enhance the stability and growth of private sector establishments.
This measure is expected to have a tangible positive impact on the financial statements of the two subsidiaries in the coming periods, as the availability of cash liquidity will allow support for the operational processes of Gulf Elevators and Escalators Company and Jadaya Investment Company, thus enhancing their competitiveness in the Saudi market.
