Riyadh – Mubasher: Middle East Paper Company (MEPCO) has extended a banking facilities agreement worth SAR 225.9 million with Riyad Bank, according to a bourse filing on Monday.

The medium-term facilities total SAR 134.6 million and are valid for five years, while the short-term loan stands at SAR 91.3 million and is renewable every year in April.

The total loan is secured by a promissory note that is equivalent to the total facility value in favor of Riyad Bank.

MEPCO aims to finance its working capital and spare parts for factory machines using the credit facilities.

Earlier this year, the company renewed a Sharia-compliant credit facility agreement worth SAR 101 million with the bank.