Takween reschedules remaining Murabaha facilities worth SAR 429 mln with banks

Takween Advanced Industries Co. signed an agreement, on Monday, to reschedule the remaining part of SAR 429.4 million Murabaha facilities from a total of SAR 1.3 billion with Arab National Bank (ANB), Samba Financial Group and Bank Albilad.

The funding period, which was originally 7 years on semi-annual installments starting from Sept. 11, 2015 until Sept. 11, 2021, was rescheduled to become 5 years, starting from May 12, 2020 until Sept. 11, 2024 on semiannual installments.

The step aims to improve Takween’s cash flows and financial position, the company said in a bourse statement, indicating that Al-Othman Holding Co., a related party, issued the legal guarantee.

The facilities are still covered by the same guarantees represented in pledging Takween’s stake in Saudi Plastic Packaging Systems Co. (previously Savola Packaging) and the company’s income account, in addition to a promissory note and a legal guarantee by Al-Othman Holding Co.

In March 2015, Takween signed a seven-year financing agreement with ANB, Samba Financial Group, and Bank Albilad to obtain a SAR 1.3 billion sharia-compliant syndicated loan, according to data compiled by Argaam.