Tabby Secures SAMA Approval for $300M in Additional Foreign Financing as Saudi Lending Business Returns to Growth
Tabby has received approval from the Saudi Central Bank (SAMA) to secure an additional SAR 1.125 billion (approximately $300 million) in foreign financing, supporting the expansion of its Saudi lending business as the company returns to growth and reports a significant quarterly recovery in profitability.
SAMA issued its no-objection on October 27, approving the additional financing from an unnamed global financial institution. The approval remains valid until the end of 2029. However, the filing does not disclose the lender's identity or confirm whether the financing has been drawn.
For the third quarter, Tabby Financing Company CJSC reported a net profit of SAR53.6 million ($14.3 million) for the three months ended September, compared with SAR11.6 million in the previous quarter. Despite the substantial quarterly recovery, net profit remained 9% lower year on year.
Revenue increased by 9% year on year to SAR426 million ($113.6 million), supported in part by a new longer-term consumer-financing product, which generated SAR59.4 million in its first full quarter.
The interim financial statements, reviewed by EY, cover Tabby's Saudi financing subsidiary rather than the group's consolidated operations across its different markets.
The foreign-financing approval follows successive reporting periods in which auditors highlighted borrowing above the ceiling prescribed by SAMA. At the end of June, the company disclosed that its net external funding exceeded the regulator's prescribed threshold by SAR520 million.
In its latest review, EY no longer included the emphasis-of-matter paragraph that had highlighted the issue in the preceding accounts. However, the new filing does not specify a revised borrowing ceiling or explicitly reconcile the latest approval with the previously reported excess.
Alongside the foreign-financing approval, Tabby expanded its domestic borrowing during the quarter, drawing SAR300 million ($80 million) through two commodity Murabaha transactions with Saudi National Bank.
The financing carries an interest rate based on one-month SAIBOR plus 2.5%, with SAR291.7 million outstanding at the end of September and a maturity date in July 2028.
Meanwhile, borrowing through Flow Finance I DAC, the Irish vehicle underpinning Tabby's existing financing structure, remained unchanged from the beginning of the year.
These developments come as Tabby continues to expand its financial services offering, following its announcement in September of a $233 million Series F funding round at a $6.5 billion valuation. The equity financing remains separate from the additional debt financing approved by SAMA.
