FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) ANNOUNCES SIGNING OF CREDIT FACILITY AGREEMENT WITH SAUDI EXIM BANK.
|Introduction||Within the framework of FIPCO endeavor to increase its export market share to global markets in line with the Kingdom’s Vision 2030, and seeking to benefit from all governmental support initiatives in line with national transformation programs, FIPCO is pleased to announce to its esteemed shareholders the signing of A master Murabaha agreement to grant short-term credit facilities with the Saudi EXIM Bank to enhance the company’s export activities, according to the following:|
|Date of obtaining the funding||2023-09-13 Corresponding to 1445-02-28|
|Financing entity||SAUDI EXIM BANK|
|Financing amount.||SR 19,000,000|
|Financing duration.||12 months from the date of signing the agreement, ending on 31/08/2024 and the loan will be repaid after 120 days from withdrawal date.|
|Guarantees offered for the financing||Signing of a promissory covering the whole value of the credit facility as well as endorsement as second beneficiary of the insurance policy proceeds with alum sum insured covering minimum 100% of the credit facility.|
|Financing objective||The product is a short-term revolving facility to finance working capital related to the company’s raw material needs to support its export activities.|
|Related Parties||No related parties are involved in this agreement.|
|Additional Information||– It is worth to mention that the company aspires to enhance its market share in global markets and open new export horizons to different markets and regions of the world that the company has not previously reached, taking into account that the company exports a third of its products and aspires to raise this percentage, within the framework of its expansion strategy to enhance its international reputation and to Its role is assigned to support national transformation programs by promoting non-oil exports, which is an essential pillar in achieving the Kingdom’s Vision 2030.|
– The agreement was concluded on September 13, 2023, and the relevant legal procedures and obtaining signatures were completed, and the final version of the agreement was received on September 20, 2023.
– The loan is Islamic- Sharia compliant.