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MEPCO secures SAR 485m loan from Bank Aljazira

MEPCO secures SAR 485m loan from Bank Aljazira
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MEPCO
1202.B
0.00% 0.00 0.00
BJAZ
1020
2.81% 16.82 0.46

Riyadh – Mubasher: Middle East Paper Company (MEPCO) has signed a Sharia-compliant facility agreement worth SAR 485 million with Bank AlJazira.

Under the agreement, the majority of the loan will be used to settle existing medium-term facilities and finance future projects, according to a recent bourse filing.

The finance includes five-year medium-term facilities amounting to SAR 350 million, including a one-year grace period.

The loan also contains SAR 100 million long-term funding with a tenor of 360 days, including short-term loans for a duration of up to 180 days, in addition to treasury products worth SAR 35 million for a maximum period of five years.

The company pointed out that the facility will be guaranteed by a promissory note, equivalent to 110% of the total value of the facility, in favour of the Saudi lender.

It is worth noting that MEPCO generated net profits after Zakat and tax worth SAR 220.86 million in 2021, a jump of 994.70% from SAR 20.17 million in 2020.