| Element List | Explanation |
|---|---|
| Announcement Detail | In order to improve the financial efficiency and reduce financing costs, and as an extension of the Company’s vision for the future, Chemanol announces that it would pay, during this week, SAR 122 Million to Saudi Industrial Development Fund (SIDF) (which represents 50% of the existing loan), and also SAR 151 Million, as an early payment, to the Lending Banks (which represents 35% of the existing loan). These payments will have positive impacts on the Current Ratio which was 1.98 in Q1 of this year and is expected to raise to more than 2.1. Also, the Debt to Equity Ratio will drop from 0.6 in Q1 to less than 0.34 after the payment of the mentioned amounts which reflects the Company’s healthy financial position. Hence, there would be a reduction of approximately SAR 4,5 Million in financial costs during this year. |
It is worth mentioning that the existing loan of SIDF will be SAR 123 Million, while the Lending Banks’ will be SAR 277. This will not affect the loan period according to the Company’s announcement on Tadawul on February 28, 2021 and March 23, 2021 regarding the Restructuring of these loans.
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