Jeddah-based Middle East Paper Company (MEPCO) announced the signing of the renewal and amendment of a Shariah-compliant bank facility agreement with Bank Albilad, which includes short and medium-term facilities to the tune of 465 million riyals.
In a statement to the Saudi Stock Exchange Tadawul, the company explained that medium-term facilities amounting to 79 million riyals for a period of five years, and short-term revolving facilities of 100 million riyals to be renewed at the end of July of each year were the provisions included. Other facilities comprise medium-term facilities worth 136 million riyals for a period of seven years to finance the tissue paper factory project, and a financing bridge to the tune of 150 million riyals for a period of two years in exchange for the fund loan for the tissue paper factory project.
The facility is secured by a promissory note with the value of the facilities in favour of the bank, explaining that its purpose is to finance the company’s working capital and capital expansions for the company and the tissue paper factory project, and also indicated that there are no related parties in the agreement.
