Saudi Kayan inks $2 bln Murabaha facility deal with NCB

Saudi Kayan Petrochemical Co. has inked a Sharia-compliant Murabaha financing facility with National Commercial Bank (NCB) at a total value of $2 billion (SAR 7.5 billion), the company said in a bourse statement.

The facility tenor will extend for seven years including a grace period of three years.

The financing facility, which was guaranteed by a promissory note, will go for replacing the outstanding secondary loans with alternative facilities at better terms. The new financing will be paid in instalments as of June 30, 2023, as follows:

- Paying off the outstanding loan of SAR 1.2 billion with the NCB, due on August 16, 2021;

- Paying off the SAR 1.5 billion worth of an outstanding loan with NCB, due on Nov. 18, 2029;

- Settling other secondary loan facilities.

There are no related parties involved in the deal, the statement added.

The deal came as part of the company’s plans to adopt new debt reducing measures aiming to raise financial competency by repaying and restructuring its remaining secondary debts