Saudi Kayan Petrochemical Company (Saudi Kayan) has signed a Sharia-compliant Murabaha financing facility with National Commercial Bank with a total value of $2 billion (SAR 7.5 billion).
The seven-year facility, which was guaranteed by a promissory note, includes a grace period of three years, according to the firm’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.
The deal comes along with Saudi Kayan’s plans to adopt new debt-reducing measures.
It also aims to increase financial competency by repaying and restructuring its remaining secondary debts.
The Murabaha will be used for replacing the outstanding secondary loans with alternative facilities at better terms.
It will be paid in installments as of 30 June 2023 as follows:
Paying off the outstanding loan of SAR 1.2 billion with NCB, matured on 16 June 2021
Paying off the outstanding loan of SAR 1.5 billion with NCB, matured on 18 November 2029
Settling other secondary loans