Sipchem Subsidiary Secures SAR 1.52 Billion Refinancing Deal with al Rajhi Bank and Saudi Fransi

Sahara International Petrochemical Company (Sipchem) disclosed that its subsidiary, Sahara Petrochemicals Company, under Sahara and Ma’aden Petrochemicals Company (SAMAPCO), has entered into an Islamic Facility Agreement with Banque Saudi Fransi and al Rajhi Bank. The agreement aims to refinance an existing syndicated bank facility totalling SAR 1,525,450,000.

The total financing under the new terms amounts to SAR 2.25 billion. Of this, SAR 724.5 million represents the repaid portion, while the new financing is pegged at SAR 1.52 billion. The tenure of the new financing is set for 8 years, secured against a promissory note, mirroring the term length of the previous financing arrangement.

As stated in the announcement on Tadawul, the restructured facilities offer more advantageous commercial terms and competitive pricing, which are expected to contribute to a reduction in finance costs for the company.