Arabian Mills said this Murabaha repayment will contribute to reducing financing costs, which will positively impact on the company’s financial results.
Arabian Mills for Food Products Co.’s (Arabian Mills) board of directors approved a voluntary prepayment of SAR 50 million toward the existing Murabaha agreement with the Saudi Awwal Bank (SAB). 
In a statement to Tadawul, the company said this payment will contribute to reducing financing costs, which will positively impact on the company’s financial results.
This step comes as part of the company’s ongoing efforts to strengthen its financial position and ensure the sustainability of its performance, the statement added.
According to data compiled by Argaam, Arabian Mills stated in its IPO prospectus that it entered into a Murabaha facility in 2021 with HSBC acting as investment agent and security agent, and Saudi Awwal Bank (SAB) as the lender responsible for transferring the borrowed funds. The agreement was amended in September 2023 to include a term acquisition Murabaha facility of SAR 1.5 billion, a bridge Murabaha facility of SAR 273.05 million, a capital expenditure Murabaha facility of SAR 125 million and a revolving working capital Murabaha facility of SAR 150 million.
Under the Murabaha facility, the company’s existing shareholders must retain ownership of no less than 51% of the company’s shares.
The company announced last June that its board of directors approved making a voluntary advance payment of SAR 100 million under the existing Murabaha agreement with SAB.
Arabian Mills said this Murabaha repayment will contribute to reducing financing costs, which will positively impact on the company’s financial results.
Arabian Mills for Food Products Co.’s (Arabian Mills) board of directors approved a voluntary prepayment of SAR 50 million toward the existing Murabaha agreement with the Saudi Awwal Bank (SAB).
In a statement to Tadawul, the company said this payment will contribute to reducing financing costs, which will positively impact on the company’s financial results.
This step comes as part of the company’s ongoing efforts to strengthen its financial position and ensure the sustainability of its performance, the statement added.
According to data compiled by Argaam, Arabian Mills stated in its IPO prospectus that it entered into a Murabaha facility in 2021 with HSBC acting as investment agent and security agent, and Saudi Awwal Bank (SAB) as the lender responsible for transferring the borrowed funds. The agreement was amended in September 2023 to include a term acquisition Murabaha facility of SAR 1.5 billion, a bridge Murabaha facility of SAR 273.05 million, a capital expenditure Murabaha facility of SAR 125 million and a revolving working capital Murabaha facility of SAR 150 million.
Under the Murabaha facility, the company’s existing shareholders must retain ownership of no less than 51% of the company’s shares.
The company announced last June that its board of directors approved making a voluntary advance payment of SAR 100 million under the existing Murabaha agreement with SAB.
