Al-Jouf Agricultural signs Islamic credit facility worth SAR 110 mln with Alinma Bank

Logo of Al-Jouf Agricultural Development Co.

Al-Jouf Agricultural Development Co. signed, on Dec. 23, 2021, an Islamic credit facility agreement worth SAR 110 million with Alinma Bank, according to a bourse statement.

The bridge loan will be used to finance the project of establishing a new French fries factory.

The bank's approval to complete the loan was conditional on the approval of the Agricultural Development Fund (ADF). The credit facility is guaranteed by ADF’s proceeds under the loan agreement signed with the fund.

In February, Al-Jouf Agricultural signed a loan agreement with ADF for SAR 186 million, to aid with the establishment of the new French fries factory, according to data available with Argaam.

In December 2020, the company’s board of directors approved the establishment of a French fries factory at a total investment cost of SAR 70 million.

In August 2021, Al-Jouf Agricultural expected the project to be complete in the third quarter of 2023, noting that the project cost was changed from previous SAR 70 million to SAR 192 million, in light of the market needs.