Saudi Paper signs SAR 50 mln corporate sustainability support program contract

Saudi Paper Manufacturing Co. (SPM) announced signing a SAR 50 million worth of credit facilities contract with Riyad Bank within the corporate sustainability support program offered by the Ministry of Finance, according to a bourse statement.

The credit facilities, which have a one-year tenor, will be guaranteed by a promissory note and SAR 50 million worth of accounts payable from the Ministry of Finance.

These facilities will be used to finance the working capital and purchase of raw materials via opening letters of credits and guarantee.

The deal underpins SPM’s recent successes and the confidence of financial entities’.

In December 2019, SPM said it reached the final step regarding the government financial support and was about to sign an agreement with the intermediary bank, Argaam reported.

Earlier in the same year, the company obtained the approval of the Ministry of Finance on a SAR 52 million financial support within the Kingdom’s National Companies Promotion Support (NCPP) and the Privatization Vision Realization Program in line with the Saudi Vision 2030, Argaam reported.