Yamama Cement inks bank financing deal

Yamama Cement Co. announced signing a financing agreement (Islamic Sharia compliant) worth SR 1.663 billion with Saudi National Bank (SNB) as follows:

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.