Saudi Paper obtains $40M credit facilities with KFH

Saudi Paper Manufacturing seeks to use the funds to cover working capital for operational activities

Saudi Paper Manufacturing Co. (SPM) signed a credit facilities agreement with Kuwait Finance House Bahrain (KFH), the company said in a statement to Tadawul.

These include facilities allocated to finance working capital and medium-term facilities amounting to $40 million (SAR 150 million).

The funding was obtained on Jan. 19. The working capital facilities extend for 12 months, renewable, while medium-term facilities last for 48 months, including a six-month grace period.

The amount is covered by a promissory note for the value of the credit facility agreement.

The credit aims at supporting the cash liquidity required to cover working capital for operational activities in line with the company’s strategy, plans and expansions in purchasing raw materials, in addition to restructuring medium-term debts to improve the company’s cash flows, the statement added.

Saudi Paper further indicated that the agreement was concluded at preferential and competitive rates with regard to profit margins.