SPIMACO signs SAR 900 mln credit facilities with SABB, Al Rajhi Bank

Logo of Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO)

Saudi Pharmaceutical Industries & Medical Appliances Corp. (SPIMACO) signed a Shariah-compliant credit facility agreement worth SAR 650 million with Saudi British Bank (SABB).

In a statement to Tadawul, the company said that the agreement comprises the renewal of SAR 150 million short-term credit facilities and new SAR 500 million long-term credit facilities.

The short-term facilities extend for one year, while the long-term facilities range between eight to 10 years, including a two-year grace period, the statement added. 

The facilities are guaranteed by a SAR 650 million promissory note.

The short-term facilities will finance working capital requirements. The long-term facilities will fund future expansions and investments.

In a separate statement, SPIMACO announced signing a SAR 250 million Shariah-compliant credit facility agreement with Al Rajhi Bank. 

The facility will finance working capital requirements.

Board member Khalid Al Gwaiz is a related party, the statement noted.