Najran Cement extends Al Rajhi Bank loan term to 2031

Logo of Najran Cement Co.

Najran Cement Co. received, on Aug. 4, Al Rajhi Bank’s approval to extend its long-term loan by an additional two and a half years.

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The new maturity date will be Nov. 25, 2031, instead of May 14, 2029, the cement producer said in a statement to Tadawul.

The current long-term loan balance stands at SAR 193 million.

Accordingly, the repayment schedule has been revised, with the next installment due on Dec. 1, 2026, and the remaining installments to be paid in semi-annual payments lower than the previous annual installments.

Najran Cement clarified that the facility’s rescheduling reflects improved financial solvency indicators, as the debt-to-asset ratio of the parent company (excluding the subsidiary) declined to its lowest level in the company’s history to just 9.3%.

In May 2022, the cement producer secured the SAR 278.5 million long-term facility from Al Rajhi Bank.