Aseer subsidiary signs SAR 342 mln financing facility with Samba

Logo of Al Rabie Saudi Foods Co.

Aseer Trading, Tourism and Manufacturing Co.’s subsidiary Al Rabie Saudi Foods Co. Ltd. signed a Shariah-compliant financing agreement at a total value of SAR 342 million, with Samba Financial Group, the firm said in a statement to Tadawul today, Feb. 2, 2021. 

The credit facilities are divided into a long term, five-year loan worth SAR 150 million including a six-month grace period, and a one-year SAR 192 million loan to finance working capital, which is renewable on an annual basis. 

A promissory note amount was provided as guarantee for the total facility. 

The purpose of the facility is to restructure the company’s credit facilities through allocating: 

- SAR 144 million for early settlement of existing loans with a local bank. 

- SAR 6 million for capital expenditure as needed. 

- SAR 192 million to finance working capital for meeting the requirements of company's operations. 

Al Rabie is a limited liability company engaged in the manufacturing of dairy products, fruit drinks, juices and canned food. The company is 57.3% owned by Aseer Arabian for Industrial Investment Co. that is fully owned by Aseer.