Saudi-based Tabuk Cement Company said it has signed an agreement for the restructuring of its credit facilities with Bank Albilad in compliance with Islamic Sharia (law). The value of the financing balance is SR380.82 million ($101 million).
A leading player in the region, Tabuk Cement Company manufactures and markets building materials. It is also a major producer and distributor of ordinary Portland cement, sulfate-resistant cement and Pozzolana cement, in addition to other cement-related products and derivatives.
Besides this, the company also focuses on the establishment of factories and lab connected with cement industries.
Unveiling the details, Tabuk Cement Company said the total amount of SR476.03 million was paid in four equal instalments of SR95.21 million.
The value of the rescheduled portion (the financing balance) is SR380.82 million, said the cement company in its filing to the Saudi bourse Tadawul.
The previous bank credit repayment period was six years, of which one was a grace year which began on March 13, 2018 and ended on the same day last year.
The payment of instalments, which began on June 13, is scheduled to end in 2024 with the amount being repaid in a total of 20 instalments on the Islamic financing terms, said the statement.
The financial impact of the transaction will be reflected in the financial results of the company, starting from the second quarter of 2020, it added.
Tabuk Cement, which is majority owned by Public Pension Agency and Khaled Saleh Abdul Rahman Al Shatri, has a production plant in south of Dubba port.-TradeArabia News Service
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