May 24 2012
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SHB extends SR460m Islamic loan to NPC
The funding is one of the biggest single bank transactions to date for a private sector company in Saudi Arabia in the aquaculture sector.
The financing arrangement, which was signed by Saudi Hollandi Bank 's Regional Manager for Corporate Banking in the Western Region Ghassan Nassief and National Prawn Company 's Managing Director Engineer Ahmed Al-Balla'a, in the presence of SHB 's Managing Director Dr. Bernd van Linder, will enable the National Prawn Company to expand its prawn farming capacity through the addition of 5 new farms. This substantially increases the company's capabilities to produce and export its world-class seafood.
"This funding will support National Prawn Company 's growth aspirations and expansion plans. We believe that the financing will help National Prawn Company rapidly increase its productivity and competitiveness. This agreement, one of the largest ever between a single bank in Saudi Arabia and a private sector firm in the aquaculture industry, underlines Saudi Hollandi Bank 's support for the Kingdom's economy and Saudi-owned companies, as well as the country's stated aim of diversifying its economy. Today, National Prawn Company is one of the largest sustainable producers of seafood in the Middle East and we are proud to play a role in National Prawn Company 's growth and development as a global exporter," said van Linder.
" Saudi Hollandi Bank has long played a leading role in the Islamic banking industry. We have forged a reputation as a bank that is innovative and forward-thinking when it comes to Shariah-based services, and the bank is proud of its history of offering a range of financing solutions that are both Shariah-compliant and appropriate to the needs of our corporate customers. Our aim is to make sure that our corporate customers have access to funding that is both in line with Islamic principles and that is flexible enough to support their growth over the short, medium and long term. Our corporate sector Shariah-compliant products have allowed Saudi Hollandi Bank to strengthen its private sector customer base and provide higher levels of funding to Saudi-based companies which in turn supports the Saudi government's aim of expanding and diversifying the nation's economy."
Founded over two decades ago, NPC currently produces over 18,000 tons a year of white prawns for sale in Saudi Arabia and abroad. The funding will significantly increase the company's production capacity at its Red Sea facilities to 32,000 tons a year on completion of the expansion phase. "We are delighted to have reached this agreement with Saudi Hollandi Bank ," said Al-Balla'a.
" Saudi Hollandi Bank was able to meet our financing needs in a way that complied with our Islamic-financing principles and also in a timely fashion. This funding will provide us with the resources to add 5 prawn farms, each consisting of 28 to 30 ponds, each pond measuring about 10 hectares. This expansion will ensure that National Prawn Company can retain its position as one of the largest fully integrated prawn farms in the world."
"Our prawns are exported globally, to markets such as Britain, Spain, Japan, Korea, America, China and Australia. We have been ISO 9001, 14001, and 22000 certified and we also own the British Retail Consortium certification. Our shrimps are of the highest quality, antibiotic free and our farms are fed directly from the pristine, crystal clear waters of the Red Sea. We believe that sustainability is essential to our growth and every aspect of our prawn production, from hatchery to pond to plate, is monitored and traceable. We consider ourselves a Saudi success story and consider Saudi Hollandi Bank our long-term partner for growth and expansion," Al-Balla'a added.
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