Saudi Printing’s UAE subsidiary signs SAR 485.1 mln Shariah deal with Dubai bank

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Saudi Printing and Packaging Co. announced that one of its wholly-owned subsidiaries in the UAE, Emirates National Factory for Plastic Ind LLC, signed a Shariah-compliant bank facility agreement with Commercial Bank of Dubai for a total value of AED 475 million (SAR 485.11 million).

The company said in a bourse statement that the agreement consists of long-term financing of AED 375 million, to be repaid over eight years, and short-term financing amounting to AED 100 million.

The amount under the long-term facility will be utilized for the early settlement of outstanding facilities with other banks in the UAE worth AED 275 million; and financing capital projects in the total of AED 100 million.

The amount under the short-term facility will be used to fund working capital.

The facility is secured by a promissory note (equivalent to facility value) in favor of the bank and other collateral.

There are no related parties to the agreement, the statement added.