FIPCO renews SAR 73.7 mln Islamic facility with Riyad Bank

Filling and Packing Materials Manufacturing Co. (FIPCO) renewed today, June 7, 2021, a SAR 73.68 million Shariah-compliant credit facility agreement with Riyad Bank, the company said in a bourse statement.

The loan tenure starts from March 25, 2021, until March 25, 2024, and the final approved agreement was obtained today.

The credit facility, which is guaranteed by a promissory note, will be used to finance working capital needs of the company and its subsidiary, FPC Industries Co.

The deal has no related parties, the statement noted.

For the purpose of increasing the production efficiency, FIPCO carried out some technical studies for its machines and production lines, by which it has been decided to replace some of old machines and production lines as well as buying new machines. It mainly aims to diversify products to meet customer requirements, increase production capacity, reduce the consumption of spare parts and utilize the manpower.

There are 34 new machines, with an investment exceeding SAR 10 million, while the expected annual return, according to studies, might reach SAR 2 million.

FIPCO is putting effort to take advantage from the industrial transformation programs scheduled to have positive future impacts to reduce operational costs, which are mainly reducing energy costs, reducing manpower, improving levels of product quality, and discovering and treating errors.

This will place FIPCO in the ranks of national companies contributing to the creation of a growing industrial environment and sustainable development.