NADEC: Al Raie financing facility ceiling cut to SAR 750M

NADEC will coordinate with ADF to review the corporate guarantee and existing pledges.

National Agricultural Development Co. (NADEC) announced an amendment to the financing agreement signed between its wholly owned subsidiary, Al Raie National Livestock Co., and the Agricultural Development Fund (ADF). The amendment includes reducing the financing ceiling from SAR 1.106 billion to SAR 750 million and extending the grace period by an additional year to four years.

In a statement to Tadawul, the company said the amendment came at the request of Al Raie, following a reassessment of the project’s implementation phases and financing structure, based on studies and reviews conducted by the company and in line with relevant best practices.

The review resulted in the development of the project’s implementation model and a reduction in external financing requirements, enhancing capital allocation efficiency, financing structure flexibility and the management of the project’s cash flows, it added.

NADEC explained that the financing term has become 16 years, including a four-year grace period, compared with 15 years including a three-year grace period before the amendment.

The company said it had previously provided guarantees related to the financing, including pledging portions of land it owns in Wadi Al-Dawasir, in addition to providing a corporate guarantee.

NADEC will coordinate with ADF to review the corporate guarantee and existing pledges to align them with the revised financing ceiling, with no additional pledges expected.

According to data available on Argaam, NADEC announced in March 2025 that Al Raie— a limited liability company 51%-owned by NADEC — had signed a financing agreement with ADF to finance the establishment of an intensive livestock breeding project for sheep and goats, including breeding and meat production, with a maximum financing ceiling of SAR 1.1 billion, subject to implementation phases, project progress and submission of the required disbursement documents.