Jamjoom Pharma provides SAR 27.1M guarantee to JV in Algeria

Logo of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma)

Jamjoom Pharmaceuticals Factory Co.’s (Jamjoom Pharma) joint venture in Algeria, Jamjoom Algeria lil Dawa (Jamjoom Algeria), renewed on Feb. 10 a Shariah-compliant short-term revolving banking facility with Al Salam Bank Algeria at DZD 2 billion (SAR 55.3 million).

To support the credit facility issuance, Jamjoom Pharma provided a corporate guarantee of DZD 980 million (SAR 27.1 million) to the bank, in line with Algerian law and in proportion to its joint venture share, the company said in a statement to Tadawul.

The facility aims to fund the short-term working capital requirements, the statement added.

However, the company said that the previous guarantee of DZD 666.4 million (SAR 18.50 million), announced on Nov. 22, 2023, in favor of the bank was no longer valid.

Jamjoom Algeria is a related party as the company's board members, Mahmoud Yousuf Jamjoom and Ahmed Yousuf Jamjoom, have a direct interest as board members of the Algeria venture. Meanwhile, Jamjoom Pharma members – Yousuf Salah Jamjoom, Mohammed Yousuf Jamjoom, and Alaa Yousuf Jamjoom – have an indirect interest.

According to data compiled by Argaam, Jamjoom Pharma recently provided an institutional guarantee of SAR 17.7 million in proportion to its joint venture share.