MESC extends facility agreement with banking consortium

Middle East Specialized Cables Co. (MESC) has extended a sharia-compliant credit facility agreement with Alawwal Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank (ANB), Banque Saudi Fransi (BSF), Riyad Bank and The Saudi British Bank (SABB).

Under the new amended agreement, the credit facility tenure will be extended from five years to seven years until December 31, 2019, as the available funding will be reallocated in line with the company’s plans.

A total of SAR 124.09 million out of SAR 417 million will be rescheduled.

The initial deal stipulated that the loan would be paid as a lump sum at the end of the loan term. However, the agreement was amended so that the loan installments are paid on a monthly basis.

This agreement, which was guaranteed by certain accounts and assets, included no third parties.