APICO renews, raises credit facilities with SNB to SAR 60M

APICO said the facilities are allocated to finance working capital requirements and the expansion of production lines.

Arabian Plastic Industrial Co. (APICO) said it renewed on Feb. 15 a Shariah-compliant credit facilities agreement with Saudi National Bank (SNB), raising the total limit to SAR 60 million.

In a statement to Tadawul, APICO said the facilities will be used to finance working capital requirements and support the expansion of production lines.

The facilities comprise a SAR 30 million revolving credit line, renewable annually, and a newly added SAR 30 million one-time facility with a tenor of 48 months.

APICO said the move aligns with its strategy to secure more favorable credit terms and lower borrowing costs to support growth, maintain appropriate leverage levels in line with transaction volumes, and strengthen production capabilities through investment in new machinery and technologies.

The original agreement was signed on Feb. 25, 2024. The renewed revolving facility remains at SAR 30 million, while the 48-month SAR 30 million facility was added under the updated arrangement.