JODC announces the latest developments on adjusting the Saudi Ministry of Finance’s loan
Referring to JODC’s announcement posted on the Saudi Stock Exchange (Tadawul) dated 18/1/1433 – 13/12/2011 on signing of a Financing Loan Agreement with the Ministry of Finance, under which the Saudi Ministry of Finance will provides a business loan to JODC in the amount of three billion Saudi Riyals.
JODC would like clarify that it is currently working with the Ministry of Finance to transfer the loan to a MURABAHA loan compatible with the provisions of the Islamic Sharia.
According to the Financing Loan Agreement, JODC is entitled to transfer the current loan to a loan compatible with the Islamic Sharia law, which requires changing existing contracts to an Islamic Murabaha Facility Agreement. Under which the loan to be compatible with the provisions of Islamic Sharia law, and the statute of the company. The synchronization process is expected to be completed on the third quarter of 2017.
The same will also maintain the financial value of the loan, and there will not be any financial impact on the company’s financial statements.