Riyadh—Mubasher: Saudi Paper Manufacturing Company inked a credit facilities agreement with Kuwait Finance House (Bahrain) for an amount of $40 million on 19 January, according to a bourse filing.
The loan includes a long-term facility, which will be used to support working capital for 12 months.
The medium-term facility holds a tenor of 48 months, including a six-month grace period.
Secured by a promissory note for the value of the credit facility agreement, the loan aims to support the company’s cash liquidity required to cover working capital for operational activities.
It will also back expansion plans in purchasing raw materials, while restructuring medium-term debts to improve the company’s cash flows.
Last October, Saudi Paper obtained SAR 105 million in new medium-term financing from Gulf International Bank (GIB).
