Saudi Kayan Petrochemical Company announces signing of an agreement for the refinancing of outstanding MURABAHA facilities in an aggregate amount of 8,1 billion Saudi Riyal for 10 years with certain local banks
| Element List | Explanation |
|---|---|
| Introduction | Saudi Kayan Petrochemical Company announces signing an agreement to refinance Islamic Murabaha loans amounting to 8.1 billion Saudi Riyals on Sunday 16/09/1446H corresponding to 16/03/2025G with certain local banks, where the refinancing agreement included replacing existing debts with new financing.
This refinancing agreement comes to achieve several strategic objectives, the most important of which are:
• Sustainable financial planning by maximizing cash liquidity, supporting the financial position and providing greater financial flexibility.
• The refinancing will improve solvency to achieve rewarding financial returns that help the company to overcome challenges, manage risks, respond to market fluctuations and manage liquidity with better flexibility to support maximizing shareholders value.
It is worth mentioning that the company has been able over the past years to reduce the level of debt related to the construction project of the company from 34.4 billion Saudi riyals to 8.1 billion Saudi riyals, as shown in its annual audited financial statements on December 31, 2024 through new refinancing, extension of previous financing and early repayment of some loans previously announced in the market. This contributed to reducing the debt burden and strengthening the company's financial position. The new refinancing agreement with local banks reflects the company's creditworthiness and the trust it has gained with financial institutions over the past years, which shows the strength and durability of the financial position.
This agreement reflects the company’s commitment by maintaining the financial position and ensuring its sustainability and achieving optimal capital, allowing us to focus on strategic priorities, achieve added value for its shareholders and enhance the position of the company to achieve continuous success, despite the difficulties and challenges facing the petrochemical sector. |
| Date of singing the rescheduling of finance | 2025-03-16 Corresponding to 1446-09-16 |
| Financing entity | Saudi National Bank, Banque Saudi Fransi, Alinma Bank, referred to as mandated lead arrangers "Syndication" |
| Reasons for rescheduling | In addition to above mentioned, supporting the financial position and improving cash flows, which contributes to achieving the company's objectives and strategies. |
| The Financing amount and rescheduled part | 8,1 billion Saudi Riyal |
| Financing Duration, before and after Rescheduling | Before refinance: 8 Years ending on December 2027G
After Refinance :10 years ending on December 2034G |
| Guarantees offered for the rescheduled Financing | Order Notes
Receivables Pledge |
| Related Parties | NA |
| Additional Information | The impact of the refinancing agreement will be reflected in the Company's financial statements starting from the first quarter ending on March 31, 2025.
An amortization schedule was developed in a sculpted manner and a tenor of 10 years with grace period until end of 2025. The debt schedule starts with low principal payments which gradually increase to 13% of the principal amount in 2028 and continues through 2034.
It is noteworthy that the agreement was signed on 16/09/1446H corresponding to 16/03/2025G, provided that all financing and repayment procedures for existing loans will be processed on 18/09/1446G corresponding to 18/03/2025G |
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