ITFC and ISFD Launch US$150m Trade Finance Support Programme for IsDB’s Least Developed Member Countries (LDMCs) Affected by the COVID-19 and the Food Security Crises
Jeddah – The International Islamic Trade Finance Corporation (ITFC) and the Islamic Solidarity Fund for Development (ISFD), both members of the Islamic Development Bank (IsDB) Group, launched in January 2023 a US$150 million Trade Finance Support Programme targeted at the IsDB’s least developed member countries (LDMCs) affected by the COVID-19 and the food security crises.
The program provides US$150 million to meet the needs of LDMCs in the wake of the pandemic and the rising food security challenges to help strengthen their resilience.
According to IsDB President and Group Chairman, Dr Muhammad Al Jasser, the US$150 million Mudaraba Agreement, signed between ITFC CEO, Eng. Hani Salem Sonbol, and Director-General of ISFD, Dr. Hiba Ahmed, is a “collaborative effort within the One-Group One Vision principle to meet IsDB Group member countries’ needs, especially in times of difficulties. The Mudaraba agreement comes at a perfect time to provide our least-developed member countries with the support they need to mitigate the effects of COVID-19 and the food security crises.”
The IsDB Group’s “One Group-One Goal” approach allows sister entities to make significant and direct contributions to the funding programme. Total IsDB Group’s financing support for agriculture and food security currently stands at US$20.6 billion.
The IsDB Group’s latest initiative is the US$10.54 billion comprehensive Food Security Response Programme (FSRP) launched in 2022 to support the ongoing food crisis and Future Food Resilience Against Climate Impact in its 57 Member States. Some 27 IsDB Member States are from continental Africa. ICIEC, the multilateral insurer and a member of the IsDB Group has committed an initial US$500m in PRI and credit insurance coverage, of which about US$127 million has been approved, including for an agricultural project in Uganda.
This latest US$150 million Trade Finance Support Programme is in line with IsDB’s comprehensive US$2.4 billion Strategic Preparedness and Response Program (SPRP) and the FSRP to meet the LDMCs’ needs for medical and food supplies through sovereign trade finance.
The Trade Finance Support Programme also aims to provide financial support to small and medium enterprises (SMEs), which form the backbone of many economies of IsDB member states especially those severely impacted by the global crises.
The initial beneficiaries of this programme are Benin, Burkina Faso, The Gambia, Mali, Senegal, Sierra Leone, Togo, Chad, Comoros, Djibouti, Mauritania, and Uganda.
SAMA Issues Licence to Manafa, the First Finance Company Specialized in Debt-based Crowdfunding in the Kingdom
Riyadh – Another sign of the progress of FinTech in the Saudi banking and finance ecosystem is the licensing in December 2022 by the Saudi Central Bank (SAMA) of Manafa – a finance company specialized in debt-based crowdfunding in the Kingdom.
Manafa is a closed joint-stock company with a capital of SAR40 million (US$10.66 million). The license was granted to the company after a successful trial run in SAMA’s Regulatory Sandbox; an experimental environment dedicated to innovative financial products and services in Saudi Arabia.
“This initiative,” stressed SAMA, “comes as part of the vital role SAMA plays in strengthening the finance sector by encouraging innovative activities and enticing a wider pool of investors and companies that can bring added value.”
SAMA also reiterated its commitment to support the finance sector, by increasing the efficacy and flexibility of financial transactions, enabling and encouraging innovations in financial services, promoting financial inclusion in the Kingdom and enabling easy and secure access to financial services to all segments of the Saudi society, with the aim of also advancing the Kingdom’s Fintech Strategy.
SAMA also issued a license in December 2022 for the latest payment financial technology company, namely Tweeq International Financial Company to provide E-wallet services. This brings the total number of payment companies licensed by SAMA to 23 companies, in addition to 5 companies granted an “In-principle Approval”.
This comes as part of SAMA’s role to promote the development of the financial technology sector to ensure ultimate stability and growth of the sector. This strategy, says SAMA, should help attract new investors and bring an added value to the sector, while complying with SAMA’s regulatory requirements.
In this regard, SAMA reiterates its commitment to support and facilitate the improvement of Fintech sector, encourage innovation and increase efficiency in financial transactions in a bid to boost financial inclusion in the Kingdom.
Securities Commission Malaysia (SC) Introduces Comprehensive New Consolidated Guidelines for the Islamic Capital Market to Further Enhance its Sharia’a Governance Framework
Kuala Lumpur – The Securities Commission Malaysia (SC) issued new Guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines) in December 2022 which will be the central source of reference on all the various offerings of Islamic Capital Market (ICM) products and services for sophisticated and retail investors. This forms part of the SC’s initiatives to further enhance the Sharia’a governance framework for the Islamic capital market (ICM).
Most importantly, the ICMPS Guidelines consolidate all Sharia’a requirements previously set out in various guidelines including the Guidelines on Unit Trust Funds, Guidelines on Exchange-Traded Funds (ETFs), and Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.
According to SC Chairman, Dr Awang Adek Hussin, the ICMPS Guidelines will provide relevant stakeholders with one comprehensive central document on Sharia’a principles and requirements that are applicable to ICM products and services.
The ICMPS Guidelines also introduce a new chapter dedicated to Waqf (endowment trusts). “In the SC’s effort to deepen and broaden the ICM,” added Dr Hussin, “this signifies Waqf as an important enabler in harnessing the value proposition of Islamic social finance for Sustainable and Responsible Investment (SRI) initiatives. Towards this end, the expanded Waqf-Featured Fund Framework (WQ-FF Framework) will now include listed funds such as Islamic Real Estate Investment Trusts (REITs) and ETFs.”
The expansion, the SC believes, will provide product issuers and investors with more options to broaden investment choices in products that allocate all or part of their returns towards socially impactful activities via Waqf.
“The release of the ICMPS Guidelines and the expansion of the WQ-FF Framework are in line with the development of the industry and market needs. Innovation is key to remain relevant and to solidify Malaysia’s role at the forefront of shariah market-based advancements,” added Dr Hussin.
The consolidated document is comprehensive and covers a wide-range of activities and operations. These include Shariah governance, the role and responsibility of Shariah advisory, Islamic Fund Management, ICM products including Sukuk, Islamic Convertible Notes and Islamic Structured Products, Islamic UCITs with Waqf Features, Islamic Private Retirement Schemes and Islamic Venture Capital and Private Equity.
Ma’aden Extends Murabaha Revolving Credit Facility Financed by Local Bank Consortium from US$2bn to US$3bn to Mitigate Against Future Commodity Price Downturns and to Strengthen Liquidity
Jeddah – Commodity Murabaha and Tawarruq Financing continue to be a strong feature of corporate finance in Saudi Arabia. Judging by the data and number of transactions the preferred choice for raising corporate finance is through Sharia’a compliant credit facilities. This applies to both high-end companies in the oil, gas, mining and petrochemical sectors to medium-and-small-sized companies.
In December 2022, Saudi Arabian Mining Company (Ma’aden), renewed a five-year extension of its Five-year Murabaha revolving credit facility supplied by a consortium of banks. In a filing to the Saudi Stock Exchange (Tadawul), the company confirmed that “the facility, which is currently undrawn has been increased from SAR7.50 billion (US$2 billion) to SAR 11.25 billion (US$3 billion) to reduce the risk of commodity price downturn, strengthen the company’s liquidity and to support future growth projects.”
The proceeds will also be used for general corporate purposes including financing working capital and buffer any liquidity constraints.
The financing bank consortium comprise Saudi National Bank, Banque Saudi Fransi, Al Rajhi Bank, Saudi British Bank, Gulf International Bank, Riyad Bank, Bank AlJazira, and Arab National Bank. e purposes including financing working capital and buffer any liquidity constraints.
Ma’aden is the largest multi-commodity mining and metals company in the Middle East and among the fastest-growing mining companies in the world, with revenues of SAR26.7 billion (US$7.12 billion) in 2021. The company is also a key component in developing the mining industry into the third pillar of the Saudi economy in line with Saudi Vision 2030.
ICIEC and Sulaiman Abdul Aziz Al Rajhi International Company Pen Wide-ranging Agreement to Invest and Insure Projects to Promote Agricultural Development and Food Security Sectors
Jeddah – The Islamic Corporation for the Insurance of Investment and Export Credit, the Jeddah-based multilateral credit and investment risk insurer, and Sulaiman Abdul Aziz Al Rajhi International Company (RAII) of Saudi Arabia signed a wide-ranging agreement in December 2022 related to investing and insuring projects in the vital agricultural and food security sectors.
RAII is a subsidiary of Sulaiman Abdulaziz Al-Rajhi Awqaf Holding, which is one of the largest business groups in Saudi Arabia, whose core activities include investments in the agricultural and food security sectors and related fields globally.
Promoting investments in the food and agricultural sectors towards achieving food security and lessening dependency on imported food supplies, in the wake of the commodity supply chain disruptions caused by the conflict in Ukraine, is a core mandate of both ICIEC and RAII. Food insecurity due to the impacts of Ukraine disruptions but more importantly also because of climate change has affected ICIEC and IsDB Member States and Emerging Markets disproportionately.
This cooperation is aimed at contributing to achieving food self-sufficiency in Saudi Arabia and ICIEC Member States in which RAII is already engaged, through jointly exploring new agri-business opportunities; investments in agricultural and food security projects; enhancing and developing agricultural infrastructure at the advanced, SME and rural farming levels; and co-financing and technical consultancy opportunities with ICIEC clients and partners using the Corporation’s risk mitigation and credit enhancement solutions.
The two parties also aim to help boost agricultural production by focusing on developing agriculture technologies and farm management services to also maximize productivity. RAII owns the largest organic agriculture project in the Kingdom, and one of the largest poultry projects in Saudi Arabia and an integrated poultry project in Egypt.
The IsDB Group, including ICIEC, are heavily invested in supporting the agricultural and food industry in Member States, 36 of which are net food importers. Total IsDB Group’s financing support for agriculture and food security currently stands at US$20.6 billion, comprising 1,538 operations. Earlier in 2022, the IsDB Group launched an US$10.54 billion comprehensive Food Security Response Programme (FSRP) aimed at supporting Member States in addressing the ongoing food crisis and scale up the Group’s continued efforts to contribute to strengthening its members’ resilience to food security shocks in the future. ICIEC is supporting this “One Group-One Goal” initiative with an allocation of US$500 million in PRI and credit insurance.
According to Oussama Kaissi, CEO of ICIEC, “Our mandate includes supporting intra-OIC trade and investment through the provision of our unique Shariah-compliant credit enhancement tools against commercial and non-commercial risks. IsDB and ICIEC Member States along with significant parts of the world, are facing an unprecedented food crisis. Food prices, particularly for cereal grains have been climbing steadily in the past few years and soared recently in the wake of Russia-Ukraine crisis. Climate change is also one of the main factors exacerbating food insecurity, through low productivity and crop failures.
“We welcome this important MoU with RAII, an institution which has a venerable reputation in the sector both in the Kingdom and wider world. We look forward to a fruitful partnership with RAII in boosting agricultural and food security potential especially in Member States, and attracting vital inward investment in enhancing production, yields and productivity respectively.”
Malaysia’s Mortgage Securitiser Cagamas Continues Issuance Momentum in 2023 with Aggregate RM3.2bn (US$750m) of IMTNs and CMTNs in January after a Robust Year of US$5.9bn Issuances
Kuala Lumpur – Cagamas Berhad, the National Mortgage Corporation of Malaysia, one of the most prolific issuers of Sukuk, continued its issuance momentum into 2023 with the successful pricing of its first issuance on 5 January 2023 of multi-tenured Conventional Medium Term Notes (CMTNs) and Islamic Medium Term Notes (IMTNs), amounting to a total of RM3.195 billion (US$750 million).
Cagamas President/Chief Executive Officer, Datuk Chung Chee Leong commented: “We are pleased to conclude the year with our highest total funds raised at RM24.9 billion (US$5.87 billion), which was about 30% higher than the preceding year and highest raised since 1999. This marks a strong ending to an eventful year for the Company. Going forward, despite the continued challenging global environment, Cagamas remains committed towards its efforts in fulfilling its mandate as a financial intermediary between the capital market and the Malaysian housing sector.”
Cagamas closed the year 2022 with a similar transaction totalling RM1.085 billion (US$260 million) worth of bonds and Sukuk on 5 December 2022. The transaction comprised RM735 million (US$173.19 million) 1-year Islamic Medium-Term Notes (IMTNs), RM200 million (US$47.13 million) 3-year IMTNs and RM150 million 5-year Conventional Medium Term Notes (CMTNs).
Proceeds from all the Cagamas issuance are used to fund the purchase of housing loans and house financing from the domestic financial system.
Cagamas President/ Chief Executive Officer, Datuk Chung Chee Leong Commented: “We are pleased with the successful conclusion of the IMTNs and CMTNs issuances despite cautious market sentiment in view of the lingering domestic political landscape prior and after the 15th Malaysian general election. The issuances were reasonably priced above the corresponding Malaysian Government Securities and Malaysian Government Instrument Issue.”
The above issuances bring the Company’s year-to-date issuances from both domestic and international markets to RM19.17 billion. Cagamas is on track to achieve at least RM20 billion issuance of bonds and Sukuk this year. The papers will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.
Cagamas plays a major role in Sukuk origination and continues to be an innovator in the mortgage finance and securitisation market. The Cagamas papers are listed and traded under the Scripless Securities Trading System of Bursa Malaysia.
Cagamas’ corporate bonds and Sukuk continue to be assigned the highest ratings of AAA and P1 by RAM Rating Services Berhad and AAA/AAAIS and MARC-1/MARC-1IS by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and Sukuk in the market. Since incorporation in 1986, Cagamas has cumulatively issued circa RM366.3 billion worth of corporate bonds and Sukuk.
IILM Continues Consecutive Monthly Auction in January 2023 with a US$780m Reissuance of Short-Term A-1 Rated Sukuk on the Back of a Strong Aggregate Issuance of US$13.88bn in 2022
Kuala Lumpur – The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Sharia’a-compliant financial instruments, successfully launched its first Sukuk issuance of 2023 with the reissuance of an aggregate US$780 million across three different tenors of one, three, and six-month respectively.
The auction on 17 January 2023 comprised three tranches and was priced as follows:
i) US$200 million of 1-month tenor certificates at a profit rate of 4.45%
ii) US$380 million of 3-month tenor certificates at a profit rate of 4.85%
iii) US$200 million of 6-month tenor certificates at a profit rate of 5.05%.
The Sukuk were issued under the IILM’s US$4 billion short-term Sukuk Issuance Programme. IILM Sukuk are rated “A-1” by S&P Global and “F1” by Fitch Ratings. According to IILM, the auction generated a robust demand from both Primary Dealers and investors with a combined orderbook of US$1.89 billion, representing an average bid-to-cover ratio of 242%.
Dr Umar Oseni, Chief Executive Officer of the IILM, commented: “We are pleased to start the year on a strong and positive note, with today’s first transaction of the year witnessing a healthy coverage ratio and its competitive yield reflecting a strong demand for high quality Sharia’a-compliant liquidity instruments.”
The IILM is a regular issuer of short-term Sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The IILM, added Dr Oseni, “will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar. Looking ahead into 2023, the IILM will continue to focus on developing its programme with new features and diversify its investor base and thus, enhancing the liquidity for the IILM Sukuk on the secondary market.”
The IILM, in fact, closed the year 2022 on a strong note, successfully reissuing a total of US$1.21 billion short-term Sukuk across three different tenors of one, three and six-month. The auction on 6 December comprised three tranches and was priced as follows:
i) US$450 million of 1-month tenor certificates at a profit rate of 4.25%
ii) US$340 million of 3-month tenor certificates at a profit rate of 5.05%
iii) US$420 million of 6-month tenor certificates at a profit rate of 5.35%.
The transaction was the thirteenth and final auction for 2022 and attracted a competitive tender among Islamic Primary Dealers and investors across the GCC markets as well as Asia, with a strong orderbook in excess of US$1.71 billion, representing an average bid-to-cover ratio of 141%.
According to Dr Oseni, “with the conclusion of the successful December issuance, the IILM has achieved year-to-date cumulative issuances totalling US$13.88 billion across 37 US dollar-denominated short-term Sukuk series. Furthermore, the IILM’s Sukuk issuances during the year accounts for 39% of total global US dollar Sukuk issuances. 2022 has been nothing short of an extraordinary year for the IILM, with multiple key achievements that validate the IILM’s short-term Sukuk programme as an integral part of the wider Islamic finance ecosystem.”
Despite the uncertain market conditions due to the global tightening rate environment and investors remaining cautious, the IILM, he added, successfully issued the 12-month tenor in July for the very first time and the second time in October with a size of US$250 million each, which was well received by investors with a bid-to-cover ratio of 185% and 198% respectively. The new 12-month issuance was part of a wider effort to meet the growing demand of investors for such tenor.
The Corporation also achieved a key landmark in September 2022 through obtaining its second international short-term credit rating from Fitch Ratings of “F1”, which “reaffirms the strong fundamentals of the IILM Sukuk programme and solidifies the organisation’s high quality liquidity management solutions.”
“In addition,” maintained Dr Oseni, “the IILM’s short-term Sukuk issuance in April this year saw the highest ever size of USD 600 million for the 1-month tenor since inception, to address the increasing demand from investors for the shorter tenor on the back of aggressive interest rate hikes by the US Federal Reserve. Despite ongoing concerns surrounding high-interest rates and the possibility of a global recession, the IILM recorded several new investors during the year from different countries and regions in the Middle East, Asia, Africa, and Europe, as the IILM Sukuk gains traction among different types of investors across the globe.”
The secondary market trading of the IILM Sukuk stood at US$2.04 billion through 264 trades in 2022 (the highest ever recorded to date), compared to USD 1.5 billion through 150 trades in 2021.
The IILM is a regular issuer of short-term Ṣukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. Since its inaugural issuance in 2013, the IILM has issued a total of US$89.42 billion across 198 short-term Sukuk issuances ranging from 2-week to 12-month tenor, “reflecting the organisation’s ability to provide high quality Sharia’a compliant instruments and reliable offerings to both Primary Dealers and investors, as well as offering stability to the global Islamic liquidity market.”
The IILM’s short-term Sukuk programme has a current outstanding issuance size amounting to US$3.51 billion. The IILM’s short-term Sukῡk is distributed by a diversified network of 10 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Boubyan Bank, CIMB Islamic Bank, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic, Qatar Islamic Bank, and Standard Chartered Bank. The IILM short-term Sukuk programme is rated “A-1” by S&P and “F1” by Fitch Ratings.
Saudi Home Loans Company (SHLC) Raises SAR815m (US$ 217.1m) in Two Tawarruq Finance Facilities to Expand the Company’s Mortgage Business
Jeddah – Saudi Home Loans Company (SHLC), one of the largest Islamic mortgage finance companies in the Kingdom, raised two Tawarruq Finance facilities in January 2023 totalling an aggregate SAR815 million (US$ 217.11 million).
The first facility is for SAR500 million (US$133.19 million) with a Five-year tenor provided by Arab National Bank. According to SHLC in a filing with Tadawul, the facility is a “fixed-term Tawarruq financing limit (on demand) in the amount of SAR500 million.”
The facility is guaranteed by a promissory note for the total amount of the facility assignment of receivables and related Sukuk to cover 105% of the outstanding balance of the facilities.
The second facility is a 3-year SAR315 million (US$83.91 million) facility – comprising SAR300 million in Tawarruq Finance and SAR15 million in the form of a Treasury Product – was provided by Riyad Bank. It is similarly guaranteed by a promissory note for the total amount of the facility through the assignment of receivables and related Sukuk to cover 125% of the outstanding balance of the facilities.
The purpose of both facilities, says SHLC, is to expand and increase the company’s sales volume through new originated loans to its customers, in line with the company’s strategy and future expansion plans.
The founding partners of SHLC include the International Finance Corporation (IFC), the private sector funding arm of the World Bank Group, Arab National Bank and Dar Al Arkan, the Sharia’a Compliant Saudi home and commercial property developer.
SHLC specializes in Sharia’a compliant residential mortgages and provides multiple financing products and solutions for both retail and commercial customers that suits their needs. It is a dedicated Islamic home financing and mortgage company, and a regular issuer of Sukuk and user of Murabaha facilities.
Abu Dhabi Clean Energy Pioneer Masdar and Islamic Credit and Investment Insurer ICIEC Pen MoU to Co-operate in Origination, Financing, and Execution of Renewable Energy Projects in Member States
Abu Dhabi – Abu Dhabi Future Energy Company (Masdar), which has the ambition of becoming one of the largest clean energy companies in the world, signed a wide-ranging Memorandum of Understanding (MoU) in January 2023 with Sharia’a compliant multilateral insurer, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is set to give a major boost to the transition to renewable and clean energy in markets of mutual interest to both entities.
The MoU was signed by Mr. Oussama Kaissi, Chief Executive Officer of ICIEC, and Mr. Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during the Abu Dhabi Sustainability Week, held between 15-19 January 2023.
Under the MoU, the two parties agree to co-operate “in promoting joint action in the origination, financing, and execution of renewable energy projects through ICIEC’s insurance support in its member states.”
Among ICIEC’s mandate is to promote the flow of foreign investments among and into its member states and enlarge the scope of trade transactions between them. This includes support for transitioning to clean energy through the generation of electricity from renewable non-emitting sources and, eventually the transition to a Green Economy whilst ensuring sustainable economic growth.
Masdar is similarly mandated to develop commercially viable renewable energy projects in the Middle East & North Africa (MENA) and international markets. In December 2021, Masdar launched a global clean energy powerhouse partnership with ADNOC, Mubadala and Taqa intended to spearhead the drive to net-zero carbon by 2050.
The partnership will have a combined current, committed, and exclusive capacity of over 23 Gigawatts (GW) of renewable energy, with the expectation of reaching over 50GW total capacity by 2030. The expanded Masdar entity will become one of the largest clean energy companies of its kind and be well-positioned to lead the industry on a global scale.
Masdar and ICIEC share a common interest in contributing to the growth of renewable energy in ICIEC member states, including in the MENA region, and to the international climate finance architecture. ICIEC is positioned to play a key role in private sector engagement through the credit enhancement its policies provide to financial institutions on the one hand and the access it has to its Member State national and sub-national bodies who are the custodians of the relevant Climate Action projects and transactions.
According to ICIEC, the Corporation has contributed over US$418 million toward infrastructure and over US$3.9 billion toward energy support and transition in 2022 alone. According to Oussama Kaissi, CEO of ICIEC, “co-operation between ICIEC and Masdar would bring about better co-ordination and more efficient implementation of their respective activities to the benefit of renewable energy production in ICIEC Member States.
“At ICIEC, each of our insurance policies, whether the policyholder is a financial institution, specialized company, or contractor, that offers cover against political and commercial risks, can contribute to the flow of Climate Action-related investment, specialized technology and equipment or services into its Member States thereby contributing to the goals of the Paris Climate Agreement and UN SDG Agenda.”
SPIMACO Raises SAR900m (US$240m) in Two Murabaha Financing Facilities from Local Saudi Banks
Riyadh – Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) raised an aggregate of SAR900 million (US239.75 million) in Murabaha financing in December from two local Saudi banks,
The first facility signed with Saudi British Bank (SABB) comprised two tranches – a 1-year short term facility which is a renewal of an existing SAR150 million (US$39.96 million) financing; and a SAR500 million (US$133.19 million) Murabaha facility with a tenor of 8-10 years with a two-year grace period. The facility is guaranteed through a promissory note with a value of SAR650 million.
The second facility for SAR250 million (US$66.60 million) has a tenor of 1-year and is provided by Al Rajhi Bank. The facility is guaranteed through a promissory note with a value of SAR250 million.
In a filing with Saudi Stock Exchange (Tadawul), SPIMACOconfirmed that the proceeds from the short-term facility will be used to financing working capital requirements, while the proceeds from the longer-term facility for the financing future expansions and investments.