Arabian Cement inks SAR 400 mln Murabaha loan with SABB

Arabian Cement Co. signed on Thursday a SAR 400 million Murabaha facility with the Saudi British Bank (SABB), which will be used to partially fund of phase I of the company’s expansion line.

The five-year facility allows a grace period for the first year.

The loan will be repaid in eight installments in four years, the cement manufacturer said in a bourse statement.

Arabian Cement will also provide a promissory note in return for the facility.

Last year, the board of directors gave the go-ahead for the expansion of the production line, according to data available on Argaam.

First proposed in 2011, the line will include new grinders and electricity interconnections.