Saudi Kayan to adopt debt reduction, restructuring measures

Saudi Kayan Petrochemical Co. (Saudi Kayan) plans to adopt new debt reducing measures aiming to raise financial competency by repaying and restructuring its remaining secondary debts, the firm said in a bourse statement Wednesday.

These measures include the following:

1) Early payment on June 12, 2019 of a SAR 1.125 billion loan to Samba Financial Group through available cash.

2) Early payment of a SAR 2 billion loan to Banque Saudi Fransi on June 24 through company’s cash.

3) Restructuring remaining secondary debts, as part of its strategy and goals to reduce financial costs. These deals will be disclosed at a later time.

The debt reduction and restructuring move is expected to have a positive impact on the company’s results by SAR 71 million for the second half of 2019 and SAR 230 million in 2020, the statement added.