Saudi Paper receives 1st tranche of SIDF loan

Saudi Paper Manufacturing Co. headquarters

Saudi Paper Manufacturing Co. received, on Dec. 5, the first installment of the loan granted by the Saudi Industrial Development Fund (SIDF) at a value of SAR 47.5 million, out of the financing value reaching SAR 104.9 million, to fund the fifth production line project.

In a statement to Tadawul, the company said that the financing term is eight years, with a grace period of two and a half years.

For more news on listed companies

The loan is guaranteed by promissory notes for the full financing value and a mortgage bond for all the company’s assets.

The full amount will be used to repay long-term loans, said the company, adding that this reflects its commitment to achieving financial sustainability, strengthening its financial position and reducing financing expenses.

According to data available to Argaam, Saudi Paper is working on establishing a fifth line for the production of sanitary paper rolls at its plant in Dammam’s Second Industrial Zone, with a production capacity of up to 60,000 tons annually. This is aimed to boost the company’s production capacity from 130,000 tons to 190,000 tons annually, at a value of SAR 300 million.