Pan Gulf Marketing obtains SAR 70m funding from SAB

PAN GULF
9593 0.00% 21.79 0.00 SAB
1060 -0.62% 32.18 -0.20

Riyadh – Mubasher: Pan Gulf Marketing Company has secured Sharia-compliant banking facilities totaling SAR 70 million from Saudi Awwal Bank (SAB).

The financing agreement was finalized on 29 June 2026, according to a bourse filing.

The facilities are designed to bolster the company’s operational liquidity and support its broader commercial activities through working capital financing and the issuance of various financial instruments.

Pan Gulf Marketing disclosed the securing of a significant credit facility aimed at enhancing its financial agility, adding that the facility is structured to be fully compliant with the provisions of Islamic Sharia while reflecting the standard practice for corporate financing within the Kingdom of Saudi Arabia.

The credit line is scheduled for a duration of one calendar year, providing the company with a short-term liquidity bridge to manage its ongoing operational requirements.

Meanwhile, the primary objective of this Islamic financing arrangement is to facilitate comprehensive working capital management.

Beyond direct liquidity, the agreement is specifically designed to allow Pan Gulf Marketing to issue various financial instruments, including both government and non-government guarantees.

Furthermore, the facility supports the issuance of letters of credit, which are essential for the company's procurement processes and domestic or international trade activities.

In terms of collateral and security, Pan Gulf Marketing provided a corporate guarantee equivalent to the total value of the facility. This type of guarantee serves as a formal commitment from the company to meet its financial obligations under the terms of the agreement with SAB.

The disclosure also emphasized the transparency of the transaction, noting that there are no related parties involved in the deal. This confirms that the facility was negotiated on an arm's-length basis, free from any conflicts of interest involving major shareholders or board members.

By securing Sharia-compliant funding, the company ensures that its growth and operational needs are met through instruments that align with local regulatory and religious standards.

The ability to issue government guarantees is particularly noteworthy, as it positions the company to compete effectively for public sector contracts and large-scale commercial projects that require such financial backings.

Source: Mubasher Source: {{details.article.source}}