MEPCO inks SAR 485 mln credit facility agreement with Bank AlJazira

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) signed, today, April 24, a Shariah-compliant credit facility agreement worth SAR 485 million with Bank AlJazira, the company said in a filing to Tadawul.
 

The agreement includes medium-term facilities of SAR 350 million over five years, with a one-year grace period.

It also provides revolving letter of credit facilities worth SAR 100 million with a tenor of 360 days, including a sub-limit of short-term loans with a tenor of 180 days.

In addition, the agreement includes treasury products of SAR 35 million over five years.
 

The facilities are secured by a promissory note representing 110% of the facility value in favor of Bank AlJazira.
 

The medium-term facilities will be used to repay and restructure the existing medium-term loans, in addition to financing growth projects.
 

There are no related parties in the deal, the company noted.