MEPCO subsidiary signs SAR 150 mln loan contract with SIDF

Logo of Middle East Paper Co.

Middle East Paper Co.'s (MEPCO) wholly owned subsidiary, Jothoor Paper Manufacturing Co., signed today, May 3, 2021, a loan contract with the Saudi Industrial Development Fund (SIDF) for a total value of SAR 150 million.

The duration of finance is until 15/4/1452 Hijri, according to a bourse filing.

The loan will be used to finance the establishment of a factory to produce tissue and hygienic paper.

The facility is secured by a promissory note, equivalent to facility value, in favor of SIDF.

There are no related parties to the agreement.

The company’s board of directors approved on Dec. 7, 2020, the establishment of tissue paper and hygienic paper jumbo rolls production plant at an estimated cost of SAR 338 million, Argaam reported.

In January, MEPCO signed a Shariah-compliant credit facility agreement worth SAR 340 million with Bank Albilad, including a medium-term loan worth SAR 136 million for seven years and a short-term loan worth SAR 204 million for two years, to finance the construction of the factory.