Eastern Cement signs SAR 300M financing deal with SIDF

Logo of Eastern Province Cement Co. 

Eastern Province Cement Co. signed a SAR 300 million financing agreement with the Saudi Industrial Development Fund (SIDF) to help fund a new production line at its plant with a capacity of 10,000 tons per day. The new line will replace certain existing ones.

In a statement to Tadawul, the company said that the financing contract with SIDF represents an added value for the company and will be a priority financing source among others available to the company, represented by facilities signed with commercial banks.

The company will utilize facilities within the required needs to achieve the minimum financing costs.

According to the statement, the guarantees offered for the financing are an order note, endorsement of insurance policies for the new production line project in favor of the fund, and a mortgage of equipment and machinery associated with the new production line project in favor of the fund.

There are no related parties involved in the deal, it noted.

In January 2024, Eastern Cement’s board of directors approved awarding China's Sinoma CDI a $270.53 million (SAR 1.01 billion) contract to establish a new production line with a capacity of 10,000 tons per day. The contract was signed in February 2024.