Najran Cement announces pre-settlement of SAR 45 mln loan with BSF

Najran Cement Company said that it requested Banque Saudi Fransi (BSF) for a full pre-settlement of the remaining amount of its existing loan facility which was provided to finance the Waste Heat Recovery (WHR) project with a total repayment of SAR 45 million.

The company said in a statement on Tadawul that BSF approved this request and full pre-settlement was made on June 30, 2020 using the company's own resources. Thus, the company has finished paying the entire loan amount.

The statement further noted that the loan was supposed to be paid in 3 instalments falling due on Dec. 31, 2020, March 31, 2021 and June 30, 2021.

The transaction is in accordance with the board of directors’ decision and is in line with the company’s strategy aimed at improving financial efficiency of the company, the statement added.

The company said that following this full pre-settlement, the company has completed the last step of organizing its balance sheet.

It has currently only one loan of SAR 355 million to be paid in easy installments over a period of 5 years which will strengthen the financial position of the company and support its cash flows in the coming periods.

According to data compiled by Argaam, in December 2019 BSF had approved Najran Cement Co.’s request to pre-settle one loan instalment worth SAR 15 million, due on Sept. 30, 2020.