Riyadh – Mubasher: Middle East Paper Company (MEPCO) has inked a Sharia-compliant credit facility agreement worth SAR 296.815 million with Saudi British Bank (SABB).
Through the loan, MEPCO will structure a number of current medium-term facilities and finance the purchase of land in King Abdullah Economic City (KAEC) and the company’s working capital, according to a bourse filing on Thursday.
The finance includes five-year medium-term facilities amounting to SAR 235.965 million, including a one-year grace period.
The loan also contains SAR 50 million short-term facilities renewable on February 2023 and treasury products worth SAR 10.85 million for five years.
MEPCO noted that the facility will be guaranteed by a promissory note, equal to the total value of the facility, for SABB, in addition to a mortgage over the land in KAEC.
