Tasnee to trim debt after Cristal deal, says CEO

The National Industrialization Co.’s (Tasnee) total loans, which stand at SAR 24 billion, will be cut down to SAR 16 billion after paying the debt of subsidiary National Titanium Dioxide Ltd.’s (Cristal), chief executive Mutlaq Al-Morished told Al Arabiya TV.

The company last week signed a Murabaha agreement with a number of banks. This will provide annual cash flows of SAR 500 million to SAR 700 million, he said, adding that the deal reflects the lenders’ trust in the company and its ability to repay loans in a timely manner. The agreement will also reduce the number of installments for the next quarters.

Tasnee’s cash flow faced difficulties in past years, due to the firm’s financial situation, he added.

Last week, Tasnee signed a SAR 2.93 billion syndicated Murabaha facility agreement with Riyad Bank, Saudi British Bank (SABB), Al Rajhi Bank, Emirates-NBD, Bank Albilad, SAMBA, Banque Saudi Fransi and Saudi Investment Bank. It also signed a second syndicated Murabaha facility agreement for SAR 981.8 million with Riyad Bank and SABB.

The loans are intended to refinance the company’s existing facilities and reduce the principal installments in early years to support its cash flows during the period.