FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) ANNOUNCES SIGNING OF MASTER MURABAHA AGREEMENT (CREDIT FACILITY) WITH SAUDI EXIM BANK.
| Element List | Explanation |
|---|---|
| Introduction | Seeking to benefit from all governmental support initiatives in line with national transformation programs, FIPCO is pleased to announce to its esteemed shareholders the signing of A master Murabaha agreement to grant short-term credit facilities with the Saudi EXIM Bank to enhance the company’s export activities which copes up with Board of Directors’ strategy. The previous agreement was positively contributed mainly to increasing the exported quantities by 23% and increasing the financial value of exports by 13% if the quantities and amounts were compared before and after signing the previous Master Murabaha Agreement concluded on Sep. 13, 2023 and announced on TADAWUL website on Sep. 20, 2023 FIPCO would like to take this opportunity to thank and appreciate the Saudi EXIM Bank and the Saudi Export Development Authority for their continuous support and appreciation of the bridges of trust extended between the company and these authorities, as the financial and non-financial support initiatives and programs provided by them have resulted in raising the company’s representation in international markets and increasing its market share in a number of countries around the world, facilitating the spread of the company’s products and enhancing its brand in regional and global markets. |
| Date of obtaining the funding | 2024-11-12 Corresponding to 1446-05-10 |
| Financing entity | SAUDI EXIM BANK |
| Financing amount. | SR 23,000,000 |
| Financing duration. | The agreement is starting from the date of signing and ending on 31/08/2025 and the loan will be repaid after 120 days from withdrawal date |
| Guarantees offered for the financing | Signing of a promissory covering the whole value of the credit facility as well as endorsement as second beneficiary of the insurance policy proceeds with alum sum insured covering minimum 100% of the credit facility. |
| Financing objective | The product is a short-term revolving facility to finance working capital (pre- export) related to the company’s raw material needs to support its export activities. |
| Related Parties | No related parties are involved in this agreement. |
| Additional Information | – The agreement was concluded on Nov. 12, 2024 and the relevant legal procedures and obtaining signatures were completed, and the final version of the agreement was received on Dec. 09, 2024. – The loan is Islamic- Sharia compliant. |