Watani Steel renews, amends SAR 60 mln Shariah-compliant facility with Bank Albilad

Logo of Watani Iron and Steel Co.

Watani Iron and Steel Co. announced the renewal and amendment of a Shariah-compliant bank facility agreement worth SAR 60 million with Bank Albilad on Dec. 5. 

The company said in a bourse statement that the facility agreement, which was signed by both parties on Dec. 12, is secured by a promissory note with the value of the facilities in favor of the bank.  

The purpose of the facility is to finance the company's working capital. 

The short-term credit facility agreement was renewed to finance working capital with the same value of SAR 60 million, reducing the profit rate for the current year compared to the previous year. 

All guarantees and personal guarantees for major shareholders were removed, while maintaining a promissory note with the value of the facilities in favor of the bank guaranteed by the company.