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Al Mazaya's board approves KWD 24m facility agreement with Kuwaiti bank

Al Mazaya's board approves KWD 24m facility agreement with Kuwaiti bank
The agreement will not have an impact on the company's financial position
MAZAYA
MAZAYA
-0.80% 74.20 -0.60

Mubasher: The board of Al Mazaya Holding has approved to sign a facility agreement worth KWD 24.488 million with a Kuwaiti bank to restructure the original outstanding facility of KWD 22.7 million.

The first payment is due upon signing the final contract, followed by equal payments for a five-year period and final payment due at the end of the contract term on 31 January 2027, according to a bourse filing on Wednesday.

The agreement will not have an impact on the company's financial position; however, it will improve the company's liquidity during its tenor by converting most of the outstanding debt from short term to long term.

The facility agreement is forecast to be registered in the company's financial results upon entering into the final agreement at the relevant government entities, expected during the second quarter (Q2) of 2021.

It is noteworthy to mention that in 2020, the company reported an around 3% decline in net losses attributable to the parent company's shareholders to KWD 8.48 million, compared to KWD 8.77 million in 2019.