Aseer’s Al-Rabie Foods inks SAR 400 mln Murabaha with SABB

Aseer Trading’s unit, Al-Rabie Saudi Foods Company Ltd., inked on Sunday SAR 400 million worth of Murabaha facilities with The Saudi British Bank (SABB).

The juice producer will equally inject SAR 200 million to finance working capital needs and capital expenditures (CAPEX) to upgrade production lines in its Riyadh-based plant, Aseer said in a statement on Tadawul.

The working capital cycle will extend from the date the agreement was signed to Jan. 31, 2017, and is automatically renewable.

Meanwhile, CAPEX financing will extend for six years, including a 12-month grace period which starts on the first withdrawal date, Aseer added.

The CAPEX loan will be repaid in five years, with the first installment payable at the end of the fifteenth month following the first withdrawal.

Al-Rabie is 57.3 percent-owned by Aseer Al-Arabia for Industrial Investment, a wholly-owned subsidiary of Tadawul-listed Aseer.