Yamama Cement Co. Announces the Signing of a Bank Financing Agreement
|Date of obtaining the funding||2022-03-31 Corresponding to 1443-08-28|
|Financing entity||Saudi National Bank|
|Financing amount.||The total financing amount is 1,663 million riyals (Islamic Sharia compliant) consisting of: |
1- Long-term financing of (800 million Riyals).
2- Refinancing part of the existing long-term loans amounting to (563 million Riyals).
3- Short-term financing of (300 million Riyals).
|Financing duration.||1- Long-term financing for a period of eight years (including three years of grace period). |
2- Long-term financing for a period of four years to repay part of existing loans.
3- Short-term financing for a period of one year (revolving loan on demand).
|Guarantees offered for the financing||Promissory note.|
|Financing objective||The purpose behind the agreement is: |
• long term Loan:
- For financing transfer and install the seventh line from the old plant in the south of Riyadh to the new plant’s location in Northern Halal in Al-Kharj governorate of the Riyadh region, and the production capacity of the line is 10 thousand tons/day clinker. Thus, by the end of 2024, the production capacity at the new site will reach 30 thousand tons/clinker per day.
- repaying part of existing loan obligation.
- improving financial efficiency.
• short-term Loan:
- finance working capital.
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