Amiantit reschedules SAR 525.3 mln credit facility with Alinma Bank

Logo of Amiantit

Saudi Arabian Amiantit Co. (Amiantit) signed an agreement with Alinma Bank to reschedule the Islamic banking facilities, amounting to SAR 525.3 million, the company said in a filing to Tadawul today, Oct. 31. 

The move will help improve and arrange the company's cashflow and to enhance its operations, which is appropriate with the new schedule period of 10 years. It will also help reduce the annual financial charges from Saudi Arabian Interbank Offered Rate (SAIBOR) +2.75% to be SAIBOR +1.5%. 

Before rescheduling, the total financing amount was SAR 525.3 million, including short-term Bai Ajel (SAR 461.19 million) and long-term Bai Ajel (SAR 64.11 million).

Bai Ajel for one-time SAR 367.7 million (non-revolving) for a total tenor of 10 years, inclusive of two-year grace period, repaid on semi-annual instalments and profit to be paid semi-annually during grace period.

Bai Ajel sub-limit, L/C, L/G SAR 157.6 million (revolving) to be availed against any repaid instalment from the main limit not exceeding 30% from gross limit, to finance working capital requirements through direct purchases of raw material, for aggregate period not exceeding 12 months.

The company provided a corporate guarantee for the rescheduled financing, the statement noted.

There are no related parties.