Takween makes early repayment, amends reschedule agreement with Saudi banks

Logo of Takween Advanced industries Co.

Takween Advanced industries Co. announced early settlement and amendment to the reschedule agreement of the existing balance amounting to SAR 209.5 million from the Murabaha facility following the early repayment of SAR 152.3 million, the company said a bourse filing today, July 29.

The original facility agreement, worth SAR 1.3 billion, was signed on March 11, 2015, with a group of Saudi banks comprising Arab National Bank, Samba Financial Group and Bank Albilad.

On May 11, 2020, the restructuring took place for SAR 429.4 million, while the value of the current balance after reflecting the early settlement is SAR 209.5 million in 2021.

The company said that the initial payment schedule was seven years in semi-annual instalments starting Sept. 11, 2015, and ending on Sept. 11, 2021. It was rescheduled to five years from May 12, 2020, to Sept. 11, 2024.

Takween indicated that the payment schedule after reflecting the early settlement will be three years, starting Sept. 12, 2021, until Sept. 11, 2024, on semi-annual instalments.

The continuity of the existing securities and guarantees, namely, the pledge on Saudi Plastics Packaging Systems Co. (formerly Savola Packaging Systems Co.), pledge of revenues accounts of the affiliated companies except for SAAF that was released. This is in addition to the promissory note signed and the corporate guarantee provided by Al Othman Holding.

The initial Murabaha agreement amounting to SAR 1.3 billion was approved by the ordinary general meeting on March 1, 2015. The board of directors approved the early settlement and the amendment to the Murabaha agreement on July 29, 2021, the statement noted.