MEPCO renews SAR 465 mln Shariah-compliant credit facilities with Bank Albilad

Logo of Middle East Paper Co.

Middle East Paper Co. (MEPCO) renewed its Shariah-compliant bank facility agreement with Bank Albilad, including short- and medium-term facilities, whose value decreased from SAR 540 million to SAR 465 million, the company said in a bourse filing.

The funding was obtained on Sept. 6, with duration as follows:

- Medium-term facility amounting to SAR 79 million for five years.

- Short-term facility amounting to SAR 100 million, renewable end of July every year.

- Medium-term facility amounting to SAR 136 million for seven years, to finance tissue factory.

- Bridge loan facility amounting to SAR 150 million for two years, against Saudi Industrial Development Fund (SIDF) loan to finance tissue factory.

The funding is secured by a promissory note, equivalent to total facility value, in favor of the bank, the statement said.

The purpose of the facility is to finance the company's working capital and capital expansions, in addition to financing the tissue factory.

There are no related parties, the statement added.