Jeddah-based Middle East Paper Company (MEPCO) announced the signing of a Shariah-compliant credit facility agreement with Bank AlJazira to the tune of 485 million Saudi riyals (SAR).
A statement released to the Saudi Stock Exchange Tadawul last Sunday (24 April, 2022) disclosed that the financing includes medium-term facilities valued at 350 million riyals for a period of five years with a one-year grace period; revolving letter of credit facilities of 100 million riyals with a tenor of 360 days, including a sub-limit of short-term loans maturing within 180 days; and treasury products at 35 million riyals for a five-year period.
The company aims to use the medium-term facilities to repay and restructure the existing medium-term loans, in addition to financing growth projects.
The facilities are secured by a promissory note representing 110% of the value of facilities in favour of the bank.
