TASNEE signs SR4bn deal with Saudi and UAE banks

The National Industrialization Company (TASNEE) recently signed a SR4 billion murabaha facility deal with a number of Saudi and UAE banks, local media said.
The Shariah-compliant deal was signed with Riyad Bank, Al-Rajhi Bank, Bank Albilad, Emirates NBD, Saudi British Bank (SABB), Samba Financial Group (SFG), Banque Saudi Fransi, and the Saudi Investment Bank.
According to the deal, TASNEE will repay the loan in eight years with a grace period of one year. The repayment will be made on semi-annual equal installment basis. The loan, oversubscribed 1.5 times, is meant to fund the company’s future projects and re-finance its outstanding loans.
Commenting on the deal, TASNEE Board Chairman Mubarak bin Abdallah Al-Khafra said the deal would enable the company finance its future projects and repay outstanding debts.
The participation of three new banks will give impetus to the company’s strategic banks in this regard, reflecting the strength of Saudi economy and capacity of those banks to fund mega projects in the Kingdom, he said.
The conclusion of the deal also reflects confidence of the banking sector on the company and its financial solvency which will, in turn, support its plans to implement strategies and diversify its financing sources, he said.
TASNEE is said to be the second biggest industrial and petrochemical company in the Kingdom. It produces a variety of products, including petrochemical, chemical, metal, and diversified products as well as marketing of polyolefins, batteries and plastic products.
TASNEE has also acquired Cristal Global, one of the major manufacturers of titanium dioxide (TiO2) products. Cristal, which is the world’s second largest producer of TiO2, employs nearly 4,000 employees in five continents.