Saudi Kayan Petrochemical Co. has signed an agreement with three local banks to refinance Islamic Murabaha loans worth SAR 8.1 billion, replacing existing debt with new financing.
The company stated that the refinancing aligns with its strategic objectives of maximizing cash liquidity, strengthening its financial position, and enhancing financial flexibility. The move is expected to improve solvency, optimize liquidity management, and support shareholder value by allowing Saudi Kayan to better navigate market fluctuations and risks.
Over the years, Saudi Kayan has significantly reduced its debt related to construction projects from SAR 34.4 billion to SAR 8.1 billion, as reflected in its audited financial statements for the year ended December 31, 2024. This was achieved through refinancing, extending previous loans, and early repayments.
The new refinancing deal highlights Saudi Kayan’s strong creditworthiness and the confidence financial institutions have in its financial stability. The company emphasized that this agreement supports its long-term sustainability and capital efficiency, positioning it for continued growth despite ongoing challenges in the petrochemical sector.
