Advanced chairman says 90% of redeemed sukuk repaid from available cash

Advanced Petrochemical Co. had a successful sukuk issuance and 90% of those sukuk were repaid from the company’s available cash, CNBC Arabia reported on Monday citing Chairman Fahad Al Matrafi.

The issuance proceeds were used to repay Murabaha loans of the company’s existing project, in addition to Advanced investment in its joint venture with South Korea’s SK Advanced Co Ltd.

The company has a very low debt ratio, he added, affirming that it is working with its financial advisor to find the best channel to finance its projects, including the new polypropylene facility.

Additionally, Advanced obtained a facility of less than SAR 100 million from Samba Financial Group to repay the remaining 10% of Sukuk. The remaining sum will be used in financing the company’s projects.

Earlier today, the Saudi-based firm announced that it has fully redeemed SAR 1 billion Sukuk, Argaam reported.