Saudi Paper Manufacturing Co. (SPM) signed an agreement with Alinma Bank to reschedule outstanding credit facilities which represent 40% of the company’s total loans.
The agreement aims to match the company’s cash flows conditions and improve working capital cycle, the company said in a bourse statement.
The total previous credit is SAR 275.36 million divided into SAR 240.43 million credit sales facilities and SAR 34.93 million stand-by-credit financing.
The rescheduled amount is SAR 282.05 million divided into SAR 199.79 million credit sales facilities and SAR 82.26 million stand-by-credit financing.
The amount due in 2020 is SAR 6 million, the company said, adding that the facilities are covered by a promissory note and no related parties are involved in the deal.
The previous repayment period of the credit sales was 6 years from February 2019 until November 2023 in addition to a grace period of one year.
The new repayment period of the credit sales after signing the rescheduling agreement is 7 years from July 2020 until December 2026.
The amount will be repaid on semi-annual installments at an ascending interest inclusive value, the statement added.
The cost of financing was reduced compared to the previous cost, the company also said.
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