Najran Cement Company has secured a Shariah-compliant loan from Saudi National Bank (SNB) to fund its electrical grid connection project.

The medium-term facility is valued at 49 million Saudi riyals ($13.06 million), the company said in a statement to the Saudi stock exchange.

Najran Cement will repay the loan over two years in annual instalments, with a six-month grace period.

The facility has been secured by a promissory note, the company said.

This month, Najran Cement awarded a SAR 48.93 million contract to China-based Sinoma International Engineering to develop a power grid connection project for its Sultana plant, 240 km northeast of Najran city, on a turnkey basis.

In July, the cement producer signed a contract with the National Electricity Transmission Company, a subsidiary of the Saudi Energy (formerly Saudi Electricity) Company) to build a 67 MVA transmission station supplying electricity to the Sultana plant.

The liquid fuel displacement programme, launched in August 2024, aims to displace up to one million barrels of liquid fuels across the agriculture, industry and utilities sectors by 2030, according to the Saudi Press Agency.

(Editing by Anoop Menon) (anoop.menon@lseg.com) 

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