Amiantit signs SAR 330 mln loan rescheduling deal with SNB

Saudi Arabian Amiantit Co. headquarters

Saudi Arabian Amiantit Co. signed on Oct. 3, an agreement to reschedule banking facilities with Saudi National Bank (SNB), it said in a bourse statement.

The agreement will have a positive impact on enhancing Amiantit’s performance during the next period.

The entire financing worth SAR 330 million was rescheduled, the statement added.

The financing period after the rescheduling includes a one-time trade facilitation worth SAR 219.1 million (non-revolving) for a period of 10 years, including a grace period of two years. This is to be repaid in semi-annual installments and interest to be paid semi-annually during the grace period (the last installment will be paid no later than Dec. 31, 2031).

The financing period also includes trade facilitation with a sub-limit, letters of credit and guarantee worth SAR 110.9 million, to be availed against any repaid installment from the main limit, at 30% maximum of the gross limit. This will be used to finance working capital needs through the direct purchase of raw materials and capital expenditures for a period not exceeding 12 months.

The pre-scheduling financing period includes a previous facility of SAR 313 million, trade facilitation with a sub-limit, letters of credit and guarantee worth SAR 110.9 million, and a one-time trade facilitation of SAR 219.10 million.

The rescheduling will improve the company's cash flows, enhance the operations, in line with the 10-year period, and reduce the annual financial charges from SAIBOR of +3.25% to SAIBOR of +1.5%.