Riyadh – Mubasher: National Petrochemical Company (Petrochem) on Tuesday has obtained a three-year Sharia-complaint facility at a value of SAR 550 million from Saudi British Bank (SABB).

The facility is revolving, and it will be subject for renewal annually, according to Petrochem’s statement to the Saudi Stock Exchange (Tadawul).

The kingdom-based petrochemicals firm further noted that the loan is guaranteed through a promissory note with the same value.

Petrochem will allocate the loan for financing business, and to repay sukuk which will mature on 20 June.

During January, Petrochem reported a 40% year-on-year profit decline during the fourth quarter of 2018 after calculating Zakat and Tax, to SAR 236 million from SAR 391 million in Q4-17.

Last month, SABB reported a 71.3% year-on-year hike in net profits during the fourth quarter of 2018, reaching SAR 1.21 billion from October to December 2018, compared to SAR 707 million in the corresponding month a year earlier.

Petrochem’s stock inched down 0.76% to close Tuesday’s trading session at SAR 26.15, whereas the stock of SABB went up 0.28%, finishing at SAR 35.35.