FIPCO cancels SAR 21 mln bridge loan with Riyad Bank

Filling and Packing Materials Manufacturing Co. (FIPCO) on Wednesday finalized the procedures required for canceling a short-term loan of SAR 21 million with Riyad Bank, as it was settled from FIPCO's financial resources.

The related financial impact includes cancellation of the SAR 25 million pledged by the Sharia-compliant Murabaha Cash Fund amounting, the company said in a bourse statement on Thursday.

In addition, the company reduced financing charges and bank expenses, after cutting the finance ceiling to SAR 51 million from SAR 72 million.

The remaining credit limits, terms and conditions are the same as previously announced.

FIPCO said no related parties are involved in the deal, adding that material developments in this regard will be announced in due course.

In May 2018, FIPCO 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, Argaam reported.

The new credit limit includes a long-term loan of SAR 23 million, and a short-term bridge loan of SAR 21 million, subject to 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.