Saudi Kayan secures SAR 1.5 bln Murabaha financing from BSF

Saudi Kayan Petrochemical Co. signed SAR 1.5 billion Murabaha financing agreement with Banque Saudi Fransi (BSF), the company said in a bourse statement.

The financing period is 8 years and the facilities are covered by a promissory note, the statement added.

The credit aims to replace the remaining secondary loans outstanding by a new credit with lower cost and better terms.

The step is expected to reflect positively on the company’s financials through reducing financial charges by nearly SAR 25 million in 2020 and following years, Saudi Kayan also said.