Al Kathiri subsidiary gets SAR 23 mln initial credit facility from Saudi fund

Al Kathiri Holding Co.’s wholly owned subsidiary, Alian Industrial Co., received on Monday the Saudi Industrial Development Fund’s (SIDF) initial approval on a SAR 23.2 million credit facility to finance the firm’s building materials factory.

The seven-year facility will be repaid semi-annually, and is secured against a mortgage on the project assets and a corporate guarantee from Nomu-listed Alkathiri holding, the company said in a bourse statement.

The project, estimated to cost SAR 32.2 million, will be 75 percent funded by the facility and 25 percent by the firm’s own funds.

The factory is set to use Italian technology to produce polystyrene sheets reinforced by iron and concrete, and will reach full capacity over three years producing 1.3 million square meters per year for 1,000 housing units a year.

First year estimated sales are expected to reach SAR 30 million and SAR 60 million by the third operational year, the statement said.

The deal has no related parties, it added.