APICO renews SAR 102.5M facilities agreement with SAIB

Logo of Arabian Plastic Industrial Co. (APICO)

Arabian Plastic Industrial Co. (APICO) renewed a SAR 102.5 million facilities agreement with The Saudi Investment Bank (SAIB).

According to a statement on Tadawul, APICO said the renewed banking facilities included a working capital facility limit of SAR 47 million for a tenure of 12 months.

They also comprised a working capital limit of SAR 33.5 million available for 12 months combined with the sublimity of a medium-term loan of SAR 30.15 million to be settled in 26 quarterly installments after six months of compiling the entire loan drawdowns.

Additionally, a working capital limit of SAR 22 million was set combined with a medium-term loan of SAR 19.8 million, to be settled in 22 quarterly installments after six months of compiling the entire loan drawdowns.

The facilities were fully covered by a promissory note by APICO, and a corporate guarantee by Omar Abu Bakr Balubaid Co., a related party, the statement added.

APICO will finance the working capital requirements, open letters of credit (LCs) for the purchase of raw materials and fund the expansion of its facility in Al-Kharj, Riyadh.

The company will use a working capital of SAR 55.5 million with the sublimity of a medium-term loan of SAR 49.95 million to expand production facilities in Al-Kharj.