Saudi cement company Yamama inks $230mln Islamic finance deal

Loan will be in two parts, a long-term one worth $150mln for over a five-year period

  
Saudi riyal. Image used for illustrative purpose.

Saudi riyal. Image used for illustrative purpose.

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Saudi-based Yamama Cement Company has signed a key Islamic financing agreement with Al Rajhi Bank to secure a loan worth SR863 million ($230 million).
 
The loan will be in two parts, a long-term one worth SR563 million for over a five-year period while the short-term one worth SR300 million will be for one year (revolving loan on demand), the company said in a filing to the Saudi bourse Tadawul.
 
The proceeds of the loan will be used for settling other banks' obligations and improving financial efficiency and also to fund an increase in working capital, it added.

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