Red Sea International (RSI), a Saudi modular building solution provider, has successfully secured a financing deal worth SR330 million ($87.9 million) with Al Rajhi Bank. This financial arrangement encompasses a SR250 million loan that will facilitate RSI’s acquisition of a 51 percent stake in Fundamental Installation for Electric Work Co. Ltd., commonly known as First Fix.
The agreement remains valid until the completion of the acquisition process, featuring a seven-year repayment tenure that provides both RSI and Al Rajhi Bank with financial clarity, as indicated in a bourse filing.
The financing comes with guarantees, including a pledge of shares in one of RSI’s sister companies and First Fix itself.
Additionally, RSI has earmarked project proceeds to cover the annual repayment of the loan, inclusive of interest. Furthermore, a promissory note, backed by one of RSI’s sister companies, has been provided under the agreement.
This transaction involves several related parties, including Al-Dabbagh Group, Tanmiah Commercial Group, and Petromin Corp.
Back in June, RSI had announced the acquisition of a 51 percent share capital in First Fix through a cash consideration. RSI CEO Khalid Fagih had highlighted the importance of this acquisition, stating that it would provide RSI with a crucial stream of electromechanical construction capabilities, which are essential for meeting client needs.
First Fix, established in 2014, is a Saudi construction firm known for its involvement in over 190 prominent projects. The company offers integrated design, engineering, and construction services in the mechanical, electrical, and plumbing disciplines.
In another significant development, Al Rajhi Bank entered into an agreement with the National Center for Privatization in August. The purpose of this deal is to enhance public-private partnerships and create opportunities for both local and international investors in privatization initiatives. It encompasses a range of activities, including market research, financial guidance, local and international marketing consultancy, events management, training programs, and knowledge development.
The signing of this agreement involved Hani Al-Saigh, Vice President for Strategic Marketing and Knowledge Management at the National Center for Privatization, and Hossam Al-Basrawi, General Manager of Corporate Banking at Al Rajhi Bank.
