Saudi MEPCO renews $25mln credit facility; swings to net profit

The new facility will be used as working capital and to fund the purchase of spare parts

  
Islamic finance background with calculator and rosary on the table. Image used for illustrative purpose.

Islamic finance background with calculator and rosary on the table. Image used for illustrative purpose.

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Saudi-based Middle East Paper Co. (MEPCO) said it renewed a Shariah-compliant bank facility agreement worth 93 million riyals ($25 million) with Samba Financial Group.

In a statement to Tadawul on Monday, the company said the revolving credit facility, secured by a promissory note in favor of the bank, will be used as working capital and to fund the purchase of spare parts. 

The company on Tuesday posted a net profit 15.1 million riyals for 2020, compared to a net loss of 27.9 million riyals in the year-earlier period.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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