Jamjoom Pharma offers SAR 18.5M corporate guarantee for Algeria JV

Logo of Jamjoom Pharmaceutical Factory Co.

Jamjoom Pharmaceutical Factory Co.’s board of directors approved, on Nov. 21, to provide a corporate guarantee to Al Salam Bank-Algeria to support the issuance of a Shariah-compliant short-term revolving banking facility in favor of its Algerian joint venture (JV). 

The banking facility amounts to DZD 1.36 billion (SAR 37.8 million), the company said in a statement to Tadawul. 

The purpose of the banking facility is to enable the JV to finance the remaining payment of the acquisition of the pharmaceutical manufacturing facility regarding purchase of its inventory and fund its short-term working capital requirements. 

The corporate guarantee is in accordance with the Algerian Law and is in proportion to the company’s shareholding in the JV, therefore Jamjoom Pharma will be guaranteeing DZD 666.4 million (SAR 18.5 million). 

The company will keep its shareholders informed of further developments in this regard, the statement added. Board members Mahmoud Yousuf Jamjoom, Mohammed Yousuf Jamjoom and Ahmed Yousuf Jamjoom are related parties, given that each hold a board seat in the JV. 

In July, Jamjoom Pharma announced an increase in the capital of Jamjoom Algeria Lil Dawa SPA, its 49%-owned JV in Algeria, to finance part of the acquisition of an existing pharmaceutical factory in Algeria and cover operating costs, Argaam reported earlier.