Saudi-listed Eastern Province Cement Company has secured an 850-million Saudi riyal ($226.35 million) Shariah-compliant credit facility with Saudi National Bank (SNB) to finance its new production line.
The facility will be mainly used to support the construction of a new SAR 1.01 billion ($269 million) production line with capacity of 10,000 tonnes per day and also bolster the company’s working capital.
The nine-year facility is backed by guarantees such as a promissory note and assigning of insurance policies, as well as mortgaging the equipment and machinery of the new production line in favour of the bank.
The SAR850 million facility is the maximum amount available for financing and various banking services, the statement said, adding that the company will utilise the loan, secured on competitive terms and rates, as needed.
In January, Eastern Cement awarded the contract for constructing the new production line to Chinese company.
In March, the company had secured a SAR 1 billion facility from Banque Saudi Fransi to fund the new production line and provide working capital support.
