Yamama Cement signs SAR 1.663 bln financing agreement with Saudi National Bank

Yamama Cement’s headquarters

Yamama Cement Co. signed on March 31 a Shariah-compliant financing agreement for SAR 1.663 billion with Saudi National Bank, the cement producer said in a statement to Tadawul.

The agreement covers long-term financing of SAR 800 million, for a period of eight years (including three years of grace period); and refinancing part of the existing long-term loans amounting to SAR 563 million, for a period of four years to repay part of existing loans.

It also includes short-term financing of SAR 300 million, for a period of one year (revolving loan on demand).

The financing agreement is guaranteed by promissory note, the statement noted.

The long term loan is aimed towards financing the transfer and installation of the seventh line from the old plant in south Riyadh to the new plant’s location in Al-Kharj governorate.

The production capacity of the line is 10,000 tons/day clinker. By the end of 2024, the clinker production capacity at the new site is expected to reach 30,000 tons/day.

The long term loan also aims to repay a part of existing loan obligation, and improve financial efficiency.

The purpose of the short term loan is to finance the working capital.

There are no related parties to the agreement, the statement noted.