Jamjoom Pharma provides corporate guarantee to Algeria JV

Logo of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma)

Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) announced, on July 7, its board of directors approval to provide a corporate guarantee to support the issuance of a credit facility for Jamjoom Algeria Lil Dawa SPA (Jamjoom Algeria), its 49%-owned joint venture (JV) in Algeria.

According to a statement to Tadawul, a corporate guarantee was issued to the Commercial Bank Société Générale Algérie SPA to support the issuance of a medium-term loan to Jamjoom Algeria with a total amount of DZD 1.6 billion (SAR 44.4 million).

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The purpose of this facility is to fund a special production line for ophthalmology products, in line with the strategic direction of the company.

This corporate guarantee is in accordance with Saudi Arabia’s laws and aligns with the company’s shareholding in the JV. Therefore, Jamjoom Pharma will guarantee DZD 784 million (SAR 21.75 million).

The statement noted that Jamjoom Pharma’s board members, Mahmoud Yousuf Jamjoom and Ahmed Yousuf Jamjoom, are related parties given that they each hold a board seat at Jamjoom Algeria Lil Dawa SPA.

The company will keep its shareholders informed of further developments in this regard, the statement added.