Mubasher: The board of Metal and Recycling Company has submitted its recommendation to the annual general meeting (AGM) for the approval of a credit facility agreement with Agility International Investment, a fully-owned subsidiary of Agility Public Warehousing.

The contract, which is convertible into shares, will finance Metal and Recycling’s current and future projects, according to a stock exchange statement on Sunday.

The original value of the loan amounts to a maximum of KWD 10 million. An additional 4% interest rate will be added per annum to the Central Bank of Kuwait’s (CBK) applicable rate.

Furthermore, the loan will be due after 60 months from the contract date. The original value of the loan can be converted to ordinary shares in Metal and Recycling’s capital following regulatory approvals.

Metal and Recycling further added that the said credit facilities have no material impact on the company’s financial position at the moment.

In 2019, Metal and Recycling reported an increase in losses by 67.9% to KWD 2.12 million ($6.83 million) from KWD 1.26 million ($4 million) in 2018.