Najran Cement subsidiary obtains SAR 85 mln loan from Al Rajhi Bank

Logo of Najran Cement Co.

Najran Cement Co.’s transportation subsidiary obtained a long-term Shariah-compliant credit facility, at a value of SAR 85 million, from Al Rajhi Bank.

In a statement to Tadawul, the cement producer said that the facility will be repaid within six years in semi-annual installments, with a one year-grace period.

The facility is secured with a promissory note covering full exposure, provided by the subsidiary, in addition to a corporate guarantee provided by Najran Cement in favor of Al Rajhi Bank with the full value of the loan.

Moreover, an insurance policy for the financed assets is endorsed in favor of the bank as the first beneficiary.

The facility aims to finance the subsidiary’s expansion in core business, the company said, adding that there are no related parties involved in the transaction.