Chemanol pays off SAR 400 mln loan to reduce financial costs

Logo of Methanol Chemicals Co. (Chemanol)

Methanol Chemicals Co. has paid off all the previous loans amounting to SAR 400 million after obtaining Murabaha financing on July 13, the company said in a statement.

The repayment will reduce the financial costs as the earlier loan was obtained at competitive costs and terms.

The company expects a positive financial impact in the coming years due to a significant decrease in financing costs compared to previous loans. However, the impact cannot be determined now due to the change in the internal rate of return between Saudi banks (SAIBOR) from time to time.

Chemanol signed two Sharia-compliant Murabaha financing agreements worth SAR 695 million with Banque Saudi Fransi (BSF) and Alinma Bank to complete the methanol expansion project, Argaam reported.