The National Medical Care Company has Secured a $93 Million in Murabaha Funding from the Gulf International Bank

The National Medical Care Company has Secured a $93 Million in Murabaha Funding from the Gulf International Bank

By Staff Writer, 11 September 2023

In an effort to address its working capital needs, National Medical Care Co. has successfully obtained a SR350 million ($93.30 million) murabaha financing arrangement from Gulf International Bank.

This facility consists of a SR100 million revolving loan that will undergo periodic renewals and a SR250 million long-term loan spanning a 10-year term, with a one-year grace period.

In addition to fulfilling the company's immediate working capital needs, this murabaha facility will play a crucial role in facilitating the firm's future growth and acquisition initiatives.

Meanwhile, National Medical Care Co. also announced in a separate statement to Tadawul that it has entered into an agreement with Saudi Medical Care Group to acquire full ownership of Chronic Care Specialized Medical Hospital Co. in Jeddah for SR193.21 million.

The company specified that the transaction is contingent upon standard adjustments to the purchase price, as per the terms outlined in the agreement's completion accounts mechanism.

National Medical Care Co., a Saudi Arabian company listed on TASI, has announced a potential transaction that is contingent upon various conditions, including regulatory approvals, the consent of both the purchaser's and seller's general assemblies, and customary conditions.

This move is seen as a strategic step to further their investment strategy and expand their presence in the healthcare industry.

Notably, the company reported a robust net profit of SR104.1 million in the first quarter of this year, reflecting a substantial 45 percent increase compared to the same period in the previous year.

According to an official statement, the company credited the growth in net earnings to an 18 percent boost in revenue resulting from increased business activity with the General Organization for Social Insurance, Ministry of Health, and insurance sectors.

National Medical Care Co. recorded a second-quarter net profit of SR47.80 million, marking a 12 percent increase compared to SR42.01 million earned in the corresponding period of 2022.

Source: Arab News

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