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National Industrialization Co. Announces Rescheduling Islamic facilities offered by Alinma Bank, Al Rajhi Banking and Investment Corporation, Bank AlJazira, Banque Saudi Fransi, The Saudi National Bank, Saudi Awwal Bank and Riyad Bank. collectively referred to as the “Consortium of Banks”.
| Element List | Explanation |
|---|---|
| Introduction | National Industrialization Company (Tasnee) announces the refinancing and rescheduling of the existing Islamic facilities for part of its subsidiaries: Saudi Acrylic Acid Company, Saudi Acrylic Monomers Company and Saudi Acrylic Polymers Company, collectively referred to as the “Acrylic Complex”. In order to make efficient use of 750 million SAR cash on the Acrylic Complex balance sheet while accommodating the differences between preferences of individual banks, the Consortium of Banks participated in a prepayment and waiver process. In this process, banks which preferred a prepayment of loans using cash on balance sheet agreed to partial waivers of loans. Furthermore, the Consortium of Banks agreed to reschedule the repayment of the remaining loan amount, providing an extended repayment period with an appropriate profit rate. |
| Date of singing the rescheduling of finance | 2025-02-19 Corresponding to 1446-08-20 |
| Financing entity | Alinma Bank, Al Rajhi Banking and Investment Corporation, Bank AlJazira, Banque Saudi Fransi, The Saudi National Bank, Saudi Awwal Bank and Riyad Bank. collectively referred to as the “Consortium of Banks”. |
| Reasons for rescheduling | To strengthen the financial position and to reduce the future financing costs of the Acrylic Complex. |
| The Financing amount and rescheduled part | The total value of the existing financing is SAR 3,070 million. The amount refinanced is SAR 1,309 million. The remaining balance was settled against the available cash on the Acrylic Complex balance sheet. |
| Financing Duration, before and after Rescheduling | Before Refinancing: 6 years and 10 months until 31/12/2031G corresponding to 16/09/1453H. After Refinancing: 15 years until 19/02/2040G corresponding to 05/02/1462H. |
| Guarantees offered for the rescheduled Financing | The Acrylic Complex will provide the following guarantees: - assignment of residual proceeds; - share pledge; - security over accounts; - onshore assignment agreement; - principal promissory note; and - variable rental and transaction payment promissory note. |
| Related Parties | Saudi Acrylic Acid Company, Saudi Acrylic Monomers Company and Saudi Acrylic Polymers Company, as these are all Tasnee subsidiaries with shareholding of 52.29%. |
| Additional Information | Refinancing and settlement of these loans is expected to result in the gains arising from the prepayment and waiver process. Also, savings in financing costs would have a positive impact on the cash flows as well as potential loan modification gains on the refinancing. Such items shall be subject to further assessments according to IFRS and will be reflected in Tasnee’s interim consolidated financial statements for the quarter ending March 31, 2025. The Vice Chairman of Tasnee, Mr. Talal I. Al Maiman, is the Vice Chairman of Banque Saudi Fransi and the Vice Chairman of Tasnee. This transaction has been completed without any preferential terms. Tasnee highly appreciates the participation and approval of Consortium of Banks, whose trust in supporting the Acrylic Complex was a critical enabler to this restructuring. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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