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Filling and Packing Materials Manufacturing Co. (FIPCO) signed a 19-month agreement with Riyad Bank to secure Sharia-compliant credit facilities worth SAR 49 million, the company said in a statement to the Saudi bourse on Sunday.
The facilities will be partially used to finance a new manufacturing industries joint venture. They will be also used to open new letters of credit and guarantee to buy new production lines that the company previously announced.
In January, FIPCO said it would invest SAR 122 million to own an 80 percent stake in a manufacturing industries JV with EIRAD Investment Co., Argaam earlier reported.
FIPCO pledged SAR 49 million in a Murabaha fund and provided a promissory note to secure the facilities.
The agreement was signed on April 9, FIPCO said, adding that the approval of producers on the related letters of credit and guarantee was obtained on May 4.
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