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Saudi Sipchem’s unit pens $186.6mln Murabaha loan deal

December 29, 2020

The maturity date of the new Murabaha financing is in 2027

Riyadh – Sahara International Petrochemical Company (Sipchem) said that its 75%-owned subsidiary, International Polymers Company (IPC), signed a SAR 700 million Murabaha facility agreement with Riyad Bank to refinance the existing syndicated bank facility and the Public Investment Fund’s (PIF) loan.

The new facility provides favourable terms and pricing and will convert the existing project finance into a Sharia-compliant facility, according to a bourse filing on Sunday.

The original amount of the syndicated facility is SAR 704 million and the PIF loan totals SAR 704 million. The total outstanding amount to be refinanced is SAR 750.81 million.

IPC will drawdown the full amount of the new facility and the difference between the amount to be refinanced and the new facility will be funded through its internal cash sources.

The existing syndicated bank facility will mature in 2026 while the PIF loan matures in 2027.

Moreover, the maturity date of the new Murabaha financing is in 2027, the statement said.

zawya

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