Riyadh – Methanol Chemicals Company (Chemanol) has inked two Sharia-compliant Murabaha financing agreements worth SAR 695 million with Banque Saudi Fransi and Alinma Bank.

The first agreement valued at SAR 455 million aims to settle all the company's existing loans with better terms and lower finance costs, according to a bourse filing on Wednesday.

Meanwhile, the second Murabaha financing will be used to finance the Methanol plant expansion project with a total value of SAR 240 million.

The project will result in sustainable profitability and reduce production costs for all of the company's products.

With an eight and half year-period ending in December 2030, the financing is guaranteed by promissory notes.

It is noteworthy to mention that in the first quarter (Q1) of 2022, the net profits after Zakat and tax of Chemanol surged by 243.60% to SAR 102.67 million from SAR 29.88 million in the year-ago period.

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