Two Pre-Approved Loans Worth 695 million Saudi Riyal with Banque Saudi Fransi and Alinma Bank Were Signed by Chemanol
The signing of two Sharia-compliant Murabaha funding contracts valuing Saudi Riyal 695 million took place by Methanol Chemicals Co. (Chemanol) with Alinma Bank and Banque Saudi Fransi (BSF).
On July 13, the enterprise stated to Tadawul that the loans were attained on July 7 for an eight-and-a-half-year span concluding in December 2030. The company submitted a written promise note guarantying the banks.
The primary Murabaha deal valuing Saudi Riyal 455 million will be used to clear the overdue loans with reasonable terms and lower finance charges. As a result, there will be a relaxation in yearly finance charges paired with improved cash flow, which will likely result in an improved financial state for the company while aiding its strategic goals.
Another Murabaha deal accounting for Saudi Riyal 240 million will fund the methanol plant development scheme. The arrangement's contribution will lead to the completion of the development task, which is the backbone of the company's forthcoming projects announced earlier in March 2020. The project will lead to a sustainable profit scheme with a reduced cost of production.
Chemanol is striving to aid its financial situation by settling all overdue loans through Saudi Riyal 455 million. The aim is to eliminate the account costs as the latest allocation includes competitive expenses and terms. Due to significant savings in price compared to the prior agreements, the move is expected to impact the firm financially positively.
On the contrary, the goal of the second facility is to finish the expansion project, which is anticipated to grow the production capability and profitability of Chemanol as per the announcement made on January 24, 2022.
According to the statement, there are no affiliated groups to the two accords.
January 24, 2022 - An engineering design operation agreement was signed for methanol plant expansion by Chemanol.
On January 23, an accord was finalised by Methanol Chemicals Co. (Chemanol) for the initial engineering plan for the methanol plant expansion along with the owner of the existing plant technology.
In the European stock exchange meeting, the company stated that the plant's production capacity growth would be utilised to fuel the execution of previous expansions.
The plant expansion will not only aid the company's expansion plan but also contribute significantly to the goals of the Saudi Energy Efficiency Program. It is also a crucial milestone to achieve lower manufacturing costs.
Chemanol will announce any material developments associated with the following projects in the time frame with respect to the rules and regulations.
By Q4 of 2022, the project is expected to be finalised
On March 1, 2020, Chemanol got the approval of the Ministry of Energy for assigning the appropriate amount to methanol plant expansion to improve the outcome by 100,000 tons and reach 331,000 tons annually.
The company announced during the bourse filing that a methyl diethanolamine (MDEA) production facility along with a dimethyl disulfide (DMDS) factory would be established using the outcome generated from the increase. This will take place in order to achieve the Saudi Vision 2030.
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According to their announcement, these plants will be unique, having recently come into existence in the Gulf and Kingdom region. Their products will count on gas, oil, and other major manufacturing industries.
