Jamjoom Pharma provides SAR 17.7M guarantee for Algeria joint venture

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To support the credit facility issuance, the company provided an institutional guarantee of SAR 17.7 million to Natixis Bank in line with Algerian law and in proportion to its joint venture share.

The facility aims to fund the short-term working capital requirements, the statement added.

However, the company said that the previous guarantee of SAR 17.7 million signed in favor of the bank was no longer valid.

Jamjoom Algeria is a related party as the company's board members, Mahmoud Yousuf Jamjoom and Ahmed Yousuf Jamjoom, have a direct interest as board members of the Algeria venture. Meanwhile, Jamjoom Pharma members - Yousuf Salah Jamjoom, Mohammed Yousuf Jamjoom, and Alaa Yousuf Jamjoom - have an indirect interest.

According to data available with Argaam, Jamjoom Pharma’s board of directors approved providing a corporate guarantee to Natixis Algérie to support the issuance of a Shariah-compliant short-term revolving banking facility of DZD 1.3 billion (SAR 36.2 million).

The facility was to fund the short-term working capital requirements. The corporate guarantee was in accordance with Algerian law and in proportion to the company’s shareholding in the joint venture. Hence, Jamjoom Pharma guaranteed DZD 637 million (SAR 17.7 million).