Saudi Cables signs working capital financing agreement with Rawafid Al-Mustaqbal Investment amounting to SAR 140 mln

Saudi Cable Company announced on Sunday the signing of a working capital financing agreement with Rawafid Al-Mustaqbal Investment Company amounting to 140,000,000 (one hundred and forty million) Saudi Riyals.

This agreement includes cash financing and the purchase of raw materials to execute existing manufacturing orders. This agreement aims to help Saudi Cable Company (SCC) to increase its manufacturing capacity and maintain its relationship with one of its most important strategic customers.

The Company said that Contract Details are:

1. Rawafid Al-Mustaqbal Investment Company shall deposit 30,000,000 (thirty million) Saudi Riyals in cash into the account of Saudi Cable Company, before December 30, 2023.

2. Rawafid Al-Mustaqbal Investment Company provides Saudi Cable Company with purchase orders of raw materials (copper and aluminum) amounting to 110,000,000 (one hundred and ten million) Saudi Riyals, before November 15, 2023. Purchase orders are paid, and Saudi Cable Company does not bear any fees related to the provision of such materials.

3. This financing constitutes a loan of 140,000,000 (one hundred and forty million) Saudi Riyals for Saudi Cable Company.

4. Rawafid Al Mustaqbal Investment Company aims to capitalize this loan later in exchange for shares in Saudi Cable Company after obtaining regulatory approvals. This would enable Saudi Cable Company to efficiently manufacture strategic client orders and strengthen its position in bypassing the Financial Restructuring Procedure which will have a positive impact on the company’s interest, reputation, and presence in the cable sector at the national level.

Additional Information 1. This agreement has been approved by the Financial Restructuring Procedure Bankruptcy Trustee.

2. This agreement will not entail financial contributions from the shareholders.

3. Raw materials (copper and aluminum) will be supplied to Saudi Cable Company warehouses before November 30, 2023.

4. Rawafid Al-Mustaqbal Investment Company is committed to maintaining all technical, operational, manufacturing, and administrative information of Saudi Cable Company.