Riyadh – Mubasher: Yamama Cement Company has signed a Sharia-compliant financing agreement worth SAR 1.66 billion with Saudi National Bank (SNB).

The loan comprises a long-term financing that is valued at SAR 800 million and holds a 8-year duration period, including a grace period of three years, according to a bourse filing on Sunday.

This is in addition to a SAR 563 million refinancing of the long-term funding for a duration of four years, as well as a short-term financing amounting to SAR 300 million for one year.

The facility agreement comes in line with the company’s decision to relocate and install its seventh production line from the old plant in South of Riyadh to Northern Halal in Al Kharj.

The production capacity of the line is 10,000 tonnes of clinker per day, while the new site aims to increase the output to 30,000 tonnes a day by the end of 2024.