Saudi Kayan signs 2 Islamic financing deals totalling US$700 mln to fund an increase in working capital

21-Nov-14

Saudi Kayan Petrochemical Company , an affiliate of Saudi Basic Industries Corp (SABIC) , has signed two Islamic financing deals totalling SR 2.63 bln (US$700 mln), as per Reuters. An SR1.5 bln agreement was signed with National Commercial Bank, the kingdom's largest lender by assets for up to 15 years, and a SR 1.13 bln facility with Samba Financial Group for up to 10 years. Both deals are under a Murabaha arrangement, a cost-plus sale arrangement which is commonly used in many parts of the Islamic world. The funds will be used by Kayan to fund an increase in working capital, as well as the completion of factories under construction, the company said.