Riyadh – Mubasher: Southern Province Cement Company inked a long-term loan compliant with Islamic rules with Saudi National Bank (SNB) at a value of SAR 1.40 billion.
In a bourse discourse, the listed company highlighted that it will use the proceeds of the loan to finance a production line with a daily capacity of 5,000 tonnes. This also includes the infrastructure of another line with the same capacity in the Jazan Cement plant.
The facility deal, which is secured by a promissory note, holds a duration period of 10 years, including two years as a grace period.
Southern Province Cement obtained the financing on 8 June, but the necessary signatures for the agreement were completed on 22 June 2023.
In the first quarter (Q1) of 2023, the company’s net profits after Zakat and tax plummeted by 43.68% to SAR 49 million from SAR 87 million in Q1-22.
Meanwhile, SNB registered net profits valued at SAR 5.02 billion in January-March 2023, up 11.55% from SAR 4.50 billion in the year-ago period.
