Arabian Plastic Industrial Company (Apico) has secured funding facilities worth SR105.5 million ($29 million) from Saudi Investment Bank (SAIB) to further expand its business core production activities as well as boost the company’s growth.
A leading provider of superior injection molding production services, Apico said the finance facilities will be in the form of working capital and a medium term loan.
These funds will eventually be used for setting up a new production facility in capital Riyadh, stated Apico in its filing to Saudi bourse Tadawul.
A land lease contract had already been signed with Saudi Authority for Industrial Cities and Technology Zones (Modon) in this regard last year, it stated.
The funding facilities include renewals of current banking facilities; working capital facility limit of SR47 million for a tenure of 12-months as well as a medium term loan of SR3 million to be matured during FY 2023, it added.
On the new banking facilities, Apico said the working capital limit of SR33.5 million will be available for 12 months combined with sublimit of medium-term loan of SR30.15 million to be settled in 26 quarterly installments after 6 months of compiling the complete loan drawdowns.
Additional working capital limit with an amount SR22 million combined with sublimit of medium term loan 19.8 million to be settled in 22 quarterly installments after 6 months of compiling the complete loan drawdowns.
Apico said this will take the total value of finance facilities for the group to SR105.5 million - SR55.5 million for the expansion and SR50 million for the existing facilities.
The guarantees offered for the financing include promissory notes covering the full exposure provided by the Saudi group and a corporate guarantee from Omar Abu Bakr Balubaid Company covering the full exposure, it added.-TradeArabia News Service