Naf secures SAR 7M loan from SIDF

Naf says credit from SIDF to refinance second production line project for poultry and livestock feed

Naf Company for Feed for Industry obtained on Jan. 18 a SAR 7 million loan from the Saudi Industrial Development Fund (SIDF).

In a statement to Tadawul, the company said the credit is intended to refinance the second production line project for poultry and livestock feed, with a targeted annual production capacity of 244,800 tons.

This financing is part of the company’s expansion plan aimed at doubling its production capacity and meeting the growing market demand, thereby enhancing operational flexibility, supporting product diversification, and providing integrated solutions in accordance with the highest quality standards.

Naf will repay the loan in 10 semi-annual installments following the grace period, starting on Feb. 15, 2027, and ending on Aug. 15, 2031, in accordance with the repayment schedule agreed upon with the fund, the statement added.

As guarantees against the loan, Naf provided SAR 7 million promissory notes, in addition to personal financial guarantees from major shareholders covering 100% of the total loan amount.

Naf also offered a mortgage over all factory assets, including all machinery, equipment, tools, means of transportation, buildings, and construction works existing or to be established, together with all their fixed and movable appurtenances on the land leased by the company from Al-Rass Municipality under Contract No. 1428.

Additionally, Naf promised a mortgage over land under deed No. 963004002076, located in Riyadh Al-Khabra Governorate, Qassim Region. The land is owned by a major shareholder and Chairman of the Board, Faiz Al-Harbi.

Separately, the company concluded two agreements related to the loan contract with SIDF on Jan. 18.

The first agreement is a technical consultancy, evaluation, and economic feasibility study agreement for the industrial project related to the loan, with a value of SAR 350,000, payable to the fund.

The second is a project monitoring agreement for the industrial project related to the loan, with total costs not exceeding SAR 610,000 throughout the term of the agreement, also payable to SIDF.