SAMA Water secures SAR 36.2M for new production lines

Logo of SAMA Healthy Water Factory Co.

SAMA Healthy Water Factory Co. obtained financing from Germany's Bayerische Landesbank (BayernLB), amounting to EUR 8.2 million (SAR 36.2 million).

The company stated in a disclosure to Tadawul that the financing aims to fund the production lines agreed to be purchased and installed with Germany-based Krones AG, to establish two new production lines for manufacturing water bottles in various sizes.

It added that the financing will be paid directly to Krones AG against the value of the equipment purchased for the company’s factory production lines, representing 85% of the total purchase value.

The company noted that the financing tenor is seven years, and that a promissory note for the full financing amount was provided as collateral.

It also indicated that there are no related parties.

According to data available on Argaam, SAMA Water signed a purchase agreement in April with Krones AG to supply and install equipment for establishing two new production lines.

The lines will manufacture bottled water in various sizes—small, medium, and large—according to the standards and specifications in place in Saudi Arabia. The total value of the agreement is EUR 9 million (SAR 38.43 million).

SAMA Water also announced today, Dec. 18, that it agreed with Krones AG on additional works in the project to establish the two new production lines, through an expansion of the contract scope to include the manufacture and installation of additional bottle equipment in different sizes from those originally agreed upon. The value of these additions was set at EUR 300,000 (SAR 1.32 million).