Arabian Plastic Industrial company(APICO) announces the signing of banking facilities for working capital and medium-term loans agreement with The Saudi Investment Bank (SAIB).
| Element List | Explanation |
|---|---|
| Introduction | APICO has secured banking facilities from SAIB to expand business core production activities and to support the company’s growth. The facilities include the following financing items:
1. Renewals of current banking facilities: (a) Working capital facility limit of SR 47 million for a tenure of 12-months (b) Medium term loan of SR 3 million to be matured during FY 2023. 2. New Banking Facilities: (a) Working capital limit of SAR 33.5 million available for 12 months combined with sublimit of medium-term loan of SR 30.15M to be settled in 26 quarterly installments after 6 months of compiling the complete loan drawdowns. Additional working capital limit with an amount SR 22 million combined with sublimit of medium term loan 19.8M to be settled in 22 quarterly installments after 6 months of compiling the complete loan drawdowns. Therefore, total facilities granted to APICO SR 105.5 million (55.5M for the Expansion and 50M for the existing facilities). |
| Date of obtaining the funding | 2023-03-22 Corresponding to 1444-08-30 |
| Financing entity | The Saudi Investment Bank (SAIB) |
| Financing amount. | (a) Working capital facility limit of SR 47 million.
(b) Medium term loan of SR 3 million. (c) Working capital limit of SR 55.5 million with sublimit of medium term loan of SR 49.95 million to finance APICO new production facility in phase 1 & 2. |
| Financing duration. | (a) Working capital facility for 12 months.
(b) Medium term loan of SR 3 million to be matured in FY 2023. (c) Medium term loan of SR 30.15 million (Phase 1) in 26 quarterly installments and SR 19.8 million (Phase 2) with 22 quarterly installments |
| Guarantees offered for the financing | (a) Promissory notes covering the full exposure provided by APICO,
(b) A corporate guarantee from Omar Abu Bakr Balubaid Company covering the full exposure |
| Financing objective | (a) Financing working capital requirements of existing APICO facility.
(b) Opening LCs for the purchase of raw materials. (c) Financing for new production facility in Riyadh Al-Kharj. |
| Related Parties | A corporate guarantee from Omar Abu Bakr Balubaid Company covering the full exposure |
| Additional Information | Financing for new APICO production facility in Riyadh Al-Kharj is with reference to the earlier announcement made for signing a land lease contract with Saudi Authority for Industrial Cities and Technology Zones (MODON). |
Comments