MEPCO Renew Sariah-compliant Credit Facility Deal worth SR465 mln with Bank Albilad

Middle East Paper Co. (MEPCO) has announced the renewal and amendment of a Shariah-compliant credit facilities agreement with Bank Albilad, including short and medium term facilities, as well as a decrease in the facilities value from SR540 million to SR465 million.

The agreement aims to fund working capital, capital expansions, and the tissue paper factory project.

Financing period consists of medium-term facilities worth SR79 million for 5 years, short-term revolving facilities worth SR100 million to be renewed at the end of July each year, and medium-term facilities worth SR136 million for 7 years, to finance a tissue paper factory project, according to a statement released by the Company on (“Tadawul”).

It also includes a two-year bridge financing worth SR150 million against a fund loan for the tissue paper factory project.

According to the company, the guarantees given in exchange for the financing, are represented in the facilities agreement, which is secured by a promissory note, in favour of the Bank against the facilities value and contains no related parties.