Leen Alkhair secures SAR 218 mln loan from ADF

Logo of Leen Alkhair Trading Co.

Leen Alkhair Trading Co. obtained today, Oct. 22, a SAR 217.76 million loan from the Saudi Agricultural Development Fund (ADF) to bolster working capital, aligning with the company's strategic goals.

The company aims to use the financing to establish a specialized logistics factory for fruits and vegetables, offering essential services such as cutting, sorting, packaging, manufacturing, and refrigerated storage. This aligns with the Kingdom's agricultural strategy and self-sufficiency goals in this regard, Leen Alkhair said in a Tadawul filing.

The company expects the factory to cost SAR 300 million and plans to fund any excess amount through internal financing. The project is set for completion in Q1 2025.

The financing term is 12 years with 12 annual installments, including a two-year grace period. The loan is covered by personal guarantees and the facility’s assets in favor of the fund, Leen Alkhair noted, noting there are no related parties.

The planned factory, located in the Riyadh-based Industrial Gate City, will specialize in producing and marketing fruits and vegetables. It will boast an annual capacity of over 200,000 tons, covering an area of approximately 20,000 square meters. It will utilize state-of-the-art technologies, production lines, and refrigerated storage, aimed at enhancing production efficiency and product quality as well as supporting Saudi farmers' produce marketing.