IHR renews $8M credit facility with Al Rajhi Bank on cheaper terms

What's the deal? International Human Resources Co. (IHR)Dealroom has a profile for this one. Try Dealroom → renewed and amended a Shariah-compliant credit facility worth SAR 30 million (about $8 million) with Al Rajhi BankDealroom has a profile for this one. Try Dealroom →, keeping its credit limit unchanged.

The breakdown: SAR 27.5 million funds working capital, while SAR 2.5 million covers letters of guarantee for contracts and projects. The one-year facility was obtained on August 23, with the final agreement received on October 4.

Why now? The deal renews an existing arrangement on better terms for IHR. Administrative fees drop to 0.75% from 1.50%, and the annual profit margin over the three-month SAIBOR falls to 2.50% from 3.50%.

The guarantees: IHR backed the financing with a promissory note worth SAR 30,503,940 and an assignment of project revenues covering 125% of the amount.

IHR said the agreement reflects "ongoing transactions conducted in the ordinary course of business" on prevailing commercial terms, with no preferential conditions.

The signal: This is a quick re-raise. IHR renewed a similarly sized SAR 30 million facility with Al Rajhi Bank last year — itself a renewal of a deal first signed in August 2024 — pointing to a steady, recurring credit relationship rather than a one-off raise.

Read more: maaal.com, argaam.com

Image credit: Homedust