Riyadh – Mubasher: Middle East Paper Co (MEPCO) on Thursday announced renewing and amending a sharia-compliant loan agreement with Saudi British Bank (SABB).

The firm increased the credit facility by SAR 38 million to SAR 246 million, up from SAR 208 million, according to a statement to the Saudi Stock Exchange (Tadawul).

The revolving loan, obtained through a promissory note to SABB, is subject for renewal in December of each year, the paper manufacturer further noted.

The loan will be used to finance operating capital and meet business purposes, the Saudi firm said.

SABB last reported a 71.3% year-on-year increase in net profits during the fourth quarter of 2018, logging SAR 1.21 billion from SAR 707 million in Q4-17, according to data compiled by Mubasher.

MEPCO’s stock levelled down 0.87% to SAR 20.62, while SABB’s stock shed 0.40%, reaching SAR 37.10 by the end of Thursday's trading session.