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Petrochem’s unit pens SAR 3bn refinancing deal

Petrochem’s unit pens SAR 3bn refinancing deal
The new refinanced loan is also set to be fully repaid by the end of 2023.
SAMBA
1090
4.62% 38.50 1.70
PETROCHEM
2002
-1.30% 45.45 -0.60

Riyadh – Mubasher: National Petrochemical Company (Petrochem) announced that its subsidiary Saudi Polymer Company signed a refinancing agreement worth SAR 3 billion with Samba Financial Group and Riyad Bank

The deal includes refinancing Petrochem’s exiting loan to be paid over eight semi-annual payments over a period of four years starting in June 2020, according to a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The new refinanced loan is also set to be fully repaid by the end of 2023.

Saudi Polymer Company received its original project financing loan before the commencement of construction of the project, which imposed several conditions on the company, including reserve account requirements as a guarantee for the credit facilities.

Given its improved financial position and the payment of a large amount of the loan, Saudi Polymer Company decided to refinance its original loan with better financing terms.

The company also used the reserved accounts totalling SAR 1,762 billion to repay part of the original loan, reducing the amount of the new refinanced loan.

The value of the original loan, which will be fully repaid by 2023, stood at SAR 13.458 billion and was secured from the Saudi Industrial Development Fund, the Public Investment Fund, and 19 commercial banks.