ProMedEx extends Riyad Bank funding

Saudi medical devices distributor ProMedEx has renewed an 84 million riyal Islamic financing package with Riyad Bank for one year, extending a facility the company says will be used to fund existing projects and back expansion plans as healthcare suppliers across the kingdom continue to seek working capital for inventory, imports and contract execution. The facility is equivalent to about $22.4 million.

The package is split into 6.5 million riyals of bank guarantees, 22.5 million riyals of letters of credit and a 55 million riyal tawarruq limit, according to the company’s market disclosure on Thursday, April 9. The structure underlines how distributors in the sector rely on trade finance as much as conventional liquidity lines, particularly where imported devices, hospital tenders and supplier commitments have to be financed at the same time.

ProMedEx, listed on Nomu under the symbol 9574, operates in medical equipment and device distribution and has built its business around specialist segments including spine, sports medicine, oncology, paediatric orthopaedics, general surgery and endoscopy. Company materials show it was established in Saudi Arabia in 2011, while exchange disclosures describe the group as active in medical equipment sales, warehousing and representation of device manufacturers.

The renewed facility follows a similar financing pattern disclosed by the company in 2025, when ProMedEx also said it had renewed and increased credit facilities with Riyad Bank to 84 million riyals. Before that, the company disclosed a 74.5 million riyal financing arrangement with the same lender in October 2024, suggesting an expanding reliance on structured bank funding as the business has scaled.

That financing story is unfolding alongside stronger earnings. Saudi Exchange data for the year ended December 31, 2025 show ProMedEx posted revenue of about 418.8 million riyals, up from 313.2 million riyals a year earlier, while net profit attributable to shareholders rose to roughly 41.7 million riyals from 27.6 million riyals. Profit per share increased to 11.92 riyals from 7.9 riyals. The improvement gives added context to the company’s decision to keep banking lines in place: stronger profitability can improve funding access, but fast-growing distributors still need short-term facilities to manage procurement cycles and project delivery.

Riyad Bank, one of the kingdom’s leading lenders, has remained active in Shariah-compliant corporate financing across sectors, from utilities to technology and industrial companies. Its 2025 annual results showed net profit before zakat and income tax rising to about 11.6 billion riyals, reflecting a banking sector that has continued to expand financing to corporates against the backdrop of Vision 2030 spending, private-sector investment and healthcare modernisation.

For ProMedEx, the use of letters of credit and guarantees is especially important in a market where hospital procurement depends on dependable supply chains and imported equipment often needs advance commitments. A tawarruq line, meanwhile, offers short-term liquidity in a Shariah-compliant format that can be deployed more flexibly for operational needs. The combination suggests the facility is not simply a balance-sheet placeholder but part of the mechanics of day-to-day expansion.

Healthcare distribution in Saudi Arabia has become more competitive as state spending, private hospital growth and demand for specialised treatment have opened room for mid-sized listed suppliers. That has also increased pressure on distributors to maintain supplier ties, broaden product portfolios and hold enough financing capacity to execute contracts without disruption. ProMedEx’s own corporate material says it works with around 30 suppliers and employs about 370 staff, indicating a platform that is sizeable for a specialist Nomu-listed healthcare distributor, though still small enough for bank facilities of this scale to make a material difference.

The timing of the renewal also matters. ProMedEx published its 2025 annual report on March 31 and said the board had decided against distributing a dividend for the year, a move that may indicate management is prioritising reinvestment and liquidity retention over payouts as it pushes ahead with growth plans. Renewing the Riyad Bank facility little more than a week later fits that broader capital allocation approach.