“Pharmaceutical” signs two credit facilities agreements with SABB Bank and Al Rajhi Bank

The Saudi Company for Pharmaceutical Industries and Medical Supplies “Pharmaceutical” announced the signing of a credit facilities agreement (compliant with Islamic law) with SABB Bank, at a value of 650 million riyals.

The company stated in a statement on “Tadawul Saudi Arabia”, today, Thursday, that the facilities consist of renewing short-term credit facilities at a value of 150 million riyals, and long-term credit facilities at a value of 500 million riyals.

She added that the financing period for the short-term facilities is one year, and the long-term facilities for a period of 8-10 years, including a two-year grace period.

The company revealed that the guarantees provided in exchange for financing are a promissory note of 650 million riyals, indicating that the short-term facilities are for the purpose of financing working capital requirements and the long-term facilities are for the purpose of financing future expansions and investments.

The Saudi Pharmaceutical Industries and Medical Supplies Company announced, in a separate statement, the signing of a short-term credit facilities agreement (compliant with Islamic law) with Al-Rajhi Bank, at a value of 250 million riyals.

The company said that the financing period is one year, noting that the guarantees provided in return for the financing are a promissory note of 250 million riyals.

She explained that the aim of the financing is to finance working capital requirements, pointing out that Khalid bin Abdulrahman Al-Quwaiz (a member of the Board of Directors) is a related party to the agreement.