SPM signs credit rescheduling agreement with SABB

Saudi Paper Manufacturing Co. (SPM) has signed a shariah-compliant credit facility with Saudi British Bank (SABB) to reschedule existing credit facility to manage the cash flow.

The company had earlier signed a Murabaha finance deal with SABB amounting to SAR 39 million, as the company plans to reschedule around SAR 12.5 million.

The duration of the previous credit facility was three years and six months, and is set to be completed on June 30, 2020, the firm said in a Tadawul statement.

The duration of the credit facility following the rescheduling will be one year, with first instalment scheduled for Jan. 31, 2020, and ending on Dec.31, 2020.