Yamama Cement signs SAR 863 mln financing deal with Al Rajhi Bank

Logo of Yamama Cement

Yamama Cement signed, on March 25, 2021, a Shariah-compliant financing agreement worth SAR 863 million with Al Rajhi Bank.

The company said in a bourse statement that the financing is divided into two parts, including long-term financing of SAR 563 million for a period of five years, and short-term financing of SAR 300 million for a period of one year (revolving loan on demand).

The financing is guaranteed by a promissory note, the statement added.

The long-term loan will be used for the purpose of settling other bank obligations and improving financial efficiency, while the short-term loan will be used to finance working capital.

Eng. Faisal bin Sulaiman Al-Rajhi, a member of the board of directors of Yamama Cement and brother of the board chairman of Al Rajhi Bank, Abdullah bin Sulaiman Al-Rajhi, is a related party.

Yamama Cement confirmed that the agreement was done in the ordinary course of business and no preferential benefits were granted.