Bank Albilad recently signed a credit facility deal worth SR500 million with Tabuk Cement Company (TCC) to fund the expansion of a cement plant.
The agreement was signed by Saleh bin Sulaiman Al-Habib, director-general of the corporate sector at Bank Albilad, and Khalid bin Saleh Al-Shathri, chairman of the TCC, in the presence of senior staff from both companies, local media reported.
Khaled bin Suleiman Al-Jasser, CEO of Bank Albilad, said the agreement comes at a time when cement factories in the Kingdom are witnessing massive expansion activities. “The deal is consistent with the directives of the bank to cover all parts of the Kingdom and shows the bank’s capability to provide flexible modern and Shariah-compliant financial solutions to its customers,” Al-Jasser said.
The TCC chief said that the project was the largest private industrial venture in the area of Tabuk, with a capital base of SR5 billion. “The agreement will facilitate implementation of the second phase of construction of the new production line, which represents 45 percent of the clinker production line of 5,000 tons per day, a power station and desalination plant. The rest of the project cost is self-financed, amounting to SR600 million,” Al-Shathri said.
He stated that the financial impact of this project will materialize in the fourth quarter of fiscal year 2015 since the project implementation duration is 26 months from the date of signing of contracts.
He added that experimental production of the new project will begin by the end of the third quarter of 2015 for a period of six months, while commercial production will be launched at the end of the fourth quarter of 2015.
Based on the feasibility study, the expansion project will meet the needs of Tabuk and neighboring areas, he said.
Tabuk Cement and Albilad sign SR500m credit deal
