Eastern Province Cement Company, listed on the Saudi stock exchange, has obtained an 850-million Saudi riyal ($226.35 million) Shariah-compliant credit facility from Saudi National Bank. This funding will primarily finance a new production line and support the company’s working capital.
The planned production line, valued at SAR 1.01 billion ($269 million), will have a capacity of 10,000 tonnes per day. The nine-year credit facility is secured by a promissory note, insurance policies, and the mortgaging of equipment and machinery.
The SAR850 million facility will be used as needed, offering competitive terms and rates. Earlier this year, Eastern Cement awarded the construction contract for the new line to China’s Sinoma CDI and secured a SAR 1 billion facility from Banque Saudi Fransi for further financial support.
