Jeddah-based Middle East Paper Company (MEPCO) announced the signing of a Shariah-compliant credit facility agreement with Riyadh-based Saudi British Bank (SABB), amounting to a total of 296.8 million Saudi riyals (SAR), including short and medium-term facilities.
The company said that these credit facilities, guaranteed by a promissory note, included a medium-term facility valued at 235.9 million riyals for a period of five years with a one-year grace period, treasury products at 10.8 million riyals for a five-year period, and a short-term revolving facility at 50 million riyals which is renewable in February 2023.
The company aims to utilize the loans in rescheduling the outstanding medium-term facilities, financing the company’s working capital as well as the purchase of an industrial land in King Abdullah Economic City (KAEC), in addition to funding the renovation of the plant’s machinery and equipment.
