|Introduction||Filling and Packing Materials MFG. Co. (FIPCO) announces of renewal banking facility agreement (Shariah-compliant) with Riyad Bank as follows:|
|Date of obtaining the funding||2021-06-07 Corresponding to 1442-10-26|
|Financing entity||Riyad Bank|
|Financing amount.||SR 73,68 million|
|Financing duration.||Starting from Mar.25, 2021 and ends in Mar. 25, 2024|
|Guarantees offered for the financing||The facility is secured by a promissory note in favor of Riyad Bank.|
|Financing objective||The purpose of this facility is to finance the working capital for FIPCO and its subsidiary (FPC) and to finance the new machines and production lines for FIPCO|
|Related Parties||No related Parties involved in this agreement.|
|Additional Information||– The final approved agreement was obtained on Jun. 07, 2021
– For the purpose of increasing the production efficiency, FIPCO has carried out some technical studies for its machines and production lines, by which it has been decided to replace some of old machines and production lines as well as buying new machines, which mainly aims to diversify products to meet customer requirements, increase production capacity, reduce the consumption of spare parts and utilize the manpower.
These new machines are 34, with an investment exceeding SR 10 million, while the expected annual return, according to studies, might reach SR 2 million.
– It’s worth to mention that FIPCO with its belief in Saudi Vision 2030, saves no effort to take advantage from the industrial transformation programs scheduled to have positive future impacts to reduce operational costs, which are mainly reducing energy costs, reducing manpower, improving levels of product quality, and discovering and treating errors, which will place FIPCO in the ranks of national companies contributing to the creation of a growing industrial environment and sustainable development.