Further reference to FIPCO announcements published on Tadawul website on Tuesday, Jan. 31, 2017, which relates to signing of an agreement to take part in a project of producing a new product of the manufacturing (transforming) industries, FIPCO announces signing of an Islamic credit facilities agreement with Riyad Bank, with the purpose of partial financing for the foresaid project.
The highlights of this agreement are:
1- Partial banking facility amount is SAR 49 Million.
2- Loan availability period: 19 months.
3- These facilities are secured by promissory note at the benefit of Riyad Bank, as well as pledging an amount of SAR 49 Million for Islamic murabaha fund.
4- The reason lies behind obtaining these facilities is to open documentary credits and issue letters of guarantee in order to provide the necessary funding to purchase the new production lines.
It is worth to mention that FIPCO has signed this agreement on Apr. 09, 2017, while it has got an approval of the new lines manufacturers regarding the documentary credits on Thursday, May 04, 2017.
FIPCO assures that no related parties will be involved, and any material developments in this regard will be announced in due course.
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