Southern Cement secures SAR 1.4 bln facility from SNB, reschedules previous debt

Logo of Southern Province Cement Co.

Southern Province Cement Co. signed an agreement for a Shariah-compliant long-term loan with Saudi National Bank (SNB), at a total value of SAR 1.4 billion, according to a statement to Tadawul.

The cement firm said the financing agreement is valid for 10 years, including a two-year grace period, adding that the loan is guaranteed by a promissory note.

The loan will go for financing the project of constructing a production line with a capacity of 5,000 tons/day with the infrastructure of another line with the same capacity in Jazan cement plant.

The necessary signatures for the finance agreement have been completed on June 22, said that the company, noting that there are no related parties.

Southern Cement rescheduled a Shariah-compliant, long-term loan with SNB, to align with the company’s future cash flows.

The loan, which was secured in March 2014, totals SAR 700 million, of which SAR 466.6 million was repaid.

The loan was scheduled to be repaid in four quarterly instalments until Dec. 31, 2025. Having been rescheduled, the loan will be repaid in 10 years with a two-year grace period.

The facility was guaranteed by a promissory note, the company added.