Al Rajhi Bank Grants USD 230 Million Shariah-Compliant Loan to Saudi Arabia-Based Yamama Cement

According to a Tadawul filing, Saudi Arabia-based Al Rajhi Bank has signed an Islamic financing agreement to grant Saudi Arabia-based Yamama Cement a loan worth USD 230 million (SAR 863 million).

Why it Matters?

Yamama Cement stated that the proceeds of this facility will be utilised towards settling obligations to other banks as well as towards enhancing financial efficiency in order to fund a boost to the company’s working capital.

Details

This loan is to be disbursed in two tranches by Al Rajhi Bank; one long-term portion of SAR 563 million for five years and the other portion being short-term and amounting to SAR 300 million for one year (this would be a revolving loan on demand). The financing is to be...