FIPCO hikes credit facilities with Riyad Bank to SAR 72 mln

Filling and Packing Materials Manufacturing Co. (FIPCO) has increased its Sharia-compliant credit facility limits with Riyad Bank to SAR 72 million in order to finance the new manufacturing venture of its subsidiary, it said in a statement on Tuesday.

The new credit limit includes a long-term loan of SAR 23 million, scheduled to be settled over four years after a grace period of one year and a short-term bridge loan of SAR 21 million, pending on the fulfillment of the financing requirements with the Saudi Industrial Development Fund, by pledging an amount of SAR 25 million with a Sharia-compliant Murabaha Fund.

It also includes a short-term loan of SAR 28 million to finance working capital and to support the operational activities of FIPCO and its subsidiary.

The renewed facility mitigates FIPCO’s obligations by reducing the mortgaged amount from SAR 49 million to SAR 25 million to guarantee the bridge loan.

On Monday, the company signed a 19-month agreement with Riyad Bank to secure Sharia-compliant credit facilities worth SAR 49 million to finance FPC Industries' new manufacturing industries joint venture.

FIPCO said no related parties were involved in the deal.