Board of Directors Report 2011
Financing and Investment
liquidate these investments when needed to finance its operations. The Company’s financial policies are compatible with the nature of its business and assets. The Company’s assets are managed proportionate to the stated useful life and the expected returns of the assets. This leads to flexibility in cash flow that enables the Company to meet its local and international obligations. By the end of 2011, total financing of the Company’s assets reached SAR 4.82 billion. Bahri expects that financing will reach its maximum level of SAR 4.96 billion by the end of 2013 before it will start to diminish gradually depending on the current financing agreements.
With a strong financial position and abundant surplus cash, Bahri is capable of meeting its obligations and financing its various projects. Additionally, Bahri has maintained strong relationships with local and international financial institutions over the past years and adopted Sharia-compliant investment financing policies. According to these policies, 88% of the Company’s loans have been converted to Sharia-compliant financing instruments. The proportion of the Sharia-compliant financing will reach 100% upon repayment of the current outstanding conventional commercial loans. The Company pursues a conservative financial policy in the investment of its surplus cash in low risk investments rendering it easier to
Financing during 2011 (In Thousands Saudi Riyals)
Loan balance at the beginning of the year
Average Financing Period in Years
Drawn during the year
Repayments during the year
Loan balance at year end
Mideast Ship Management Ltd.
Murabaha Financing and Long Term Loans
In Million (Saudi Riyals)
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