MEPCO Renews SAR 225.9 mln Bank Facilities with Riyad Bank

Middle East Paper Co. (MEPCO) renewed its Shariah-compliant bank facility agreement with Riyad Bank, at a total value of SAR 225.9 million, the company said in a bourse filing.

The agreement includes five-year medium-term facilities at SAR 134.6 million, and SAR 91.3 million worth of short-term revolving facility.

The revolving facility is renewable in April every year and is secured by a promissory note equivalent to the facility value in favor of the bank.

The amount is intended to finance the company’s working capital and spare parts of the plant’s machinery and equipment.