The National Industrialization Company (Tasnee) announced that it has signed a Murabaha Facility Agreement with Banque Saudi Fransi for the purpose of refinancing its Sukuk maturing in May 2019.
The credit facility value is 2 billion SAR (around $533 million), and it is repayable in one installment on the final maturity date at the end of the financing period of seven-years.
According to the Saudi company, the agreement includes a number of conditions precedents for drawing down the facility. The company didn't give further details on these conditions.
Tasnee was established in 1985, as the first Saudi private sector's fully owned joint stock industrial company, its owned by the private sector.
The company has a wide range of interests in petrochemicals, chemicals, plastics, and metals manufacturing, industrial services and environmental technologies.
Tasnee plans to startup a Titanium Sponge Project on the first half of 2019 with the cost of the project is expected to increase by $ 60 Million from the initial project cost of $440 Million which had been announced earlier.
Tasnee has recorded a strong net profit of more than a billion SAR ($266.7 million) during the first three quarters of 2018 compared to a net profit of 388.4 million SAR ($103.6 million) for the same period last year, due to the increase in average selling price of TiO2 products.