The Saudi Stock Exchange-listed company, Al-Ard Al-Mutqin for Commercial Services (Tobi), announced today the renewal of its Sharia-compliant banking facilities agreement with Alinma Bank, in a move aimed at strengthening the company’s financial solvency and supporting the expansion of its business in the technology and digital services sector.
Details of the facilities agreement with Alinma Bank
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company revealed that the renewed financing amounted to SAR 135 million. The company indicated that the financing term will extend until January 19, 2027, providing the company with long-term financial flexibility to implement its operational plans.
Regarding the guarantees provided for this financing, Toby explained that it had submitted a promissory note for the full amount of the facility to the bank. The company stated that the primary purpose of this facility is to finance new project contracts that the company has recently won or plans to bid on, as well as to issue the necessary letters of credit and bank guarantees for its operations.
Economic context and growth of the technology sector
This move by the company comes at a time when the ICT sector in Saudi Arabia is experiencing rapid growth, driven by the Kingdom's Vision 2030 initiatives, which focus heavily on digital transformation in both the public and private sectors. Tobi is a leading provider of software, operations and maintenance, and customer experience solutions, making the availability of cash flow crucial for capitalizing on the significant opportunities in the market.
The strategic importance of finance
The renewal of these facilities reflects the mutual trust between the banking sector, represented by Alinma Bank, and major national technology companies. This financing helps the company manage cash flow efficiently, particularly in government and private projects with long financial cycles. Furthermore, this agreement enhances the company's ability to bid on large-scale projects that require strong financial solvency and immediate bank guarantees.
This funding is expected to accelerate the pace of implementation of existing projects, and support the company’s strategy to expand and increase its market share, which will positively impact its financial results and shareholder returns in the medium and long term, in light of the high competition witnessed in the technology services market in the region.
