Lazurde repays SAR 75 mln long-term credit facility using capital increase proceeds

Logo of Lazurde Company for Jewelry

Lazurde Company for Jewelry repaid a long-term credit facility of SAR 75 million using the proceeds from rights issue capital increase, the company said in a bourse filing today, July 1.

The primary purpose of the capital increase through a rights issue was to use the proceeds to finance expansion plans in retail activities, reduce debt and develop e-commerce platforms.

The repayment will reduce financing costs, which will positively reflect on the company's financial results from H2 2021.

The company recently completed the offering of 14.5 million shares of priority rights at SAR 10 per share, with a total value of SAR 145 million, to increase capital from SAR 430 million to SAR 575 million.

Last week, Lazurde said the rights issue was 88.12% subscribed, while the remaining rights issue shares were 1,550% oversubscribed.