Ataa Educational Company has struck a SR125 million ($33.3 million) Islamic financing agreement to reschedule existing loans with Saudi banks.
The education firm finalized a Murabaha agreement with the Saudi Investment Bank, it said in a stock exchange filing on Wednesday June 1, 2021.
“The purpose of the agreement is to reschedule a number of existing loans with some Saudi banks and other obligations, in addition to working capital financing and facility line for letters of guarantees issuance,” it said in a statement.
It added that the agreement would provide better terms and more competitive pricing.
The group operates some 13 schools in Riyadh with more than 26,000 students enrolled.
Private school operators throughout the region have been hit hard by the pandemic with some forced to freeze or cut fees.