MEPCO Signs Bank Facility Agreement from SABB for SR296, 8 mln

Middle East Paper Co. (MEPCO) announces of signing bank facility agreement (Shariah-compliant) from Saudi British Bank (SABB) for medium-term & short-term facilities valued SR296, 815,000.00.

The facility is secured by a promissory note (equivalent to total facility value) in favor of the bank and a mortgage over land in King Abdullah Economic City.

The Financing duration is medium-term facilities amounting to SAR235, 965,000 million for 5 years (including 1 year grace period: Treasury Products amounting to SAR10, 850,000 million for 5 years and short-term facilities amounting to SAR50, 000,000 million renewable on February 2023.

“The purpose of this facility is to consolidate a series of existing medium-term facilities, early settlement of land in KAEC, finance the company’s working capital & upgrade elements of Plant & Equipment.” MEPCO said.