Staff Writer

Saudi Kayan Petrochemical Company has signed a shariah-compliant (Murabaha) refinancing deal worth 8.1 billion Saudi riyals ($2.2 billion) with three local banks.

The lenders include Saudi National Bank, Banque Saudi Fransi and Alinma Bank, the petrochemicals major said on Monday.

The original financing duration before restructuring was eight years, maturing December 2027, while the new loan has a duration of 10 years, ending December 2034.
 
The agreement is covered by a promissory note and accounts receivable.

Refinancing will improve solvency, manage risks, respond to market fluctuations, and manage liquidity with greater flexibility. 

Over the past years, Saudi Kayan has reduced the debt level from SAR 34.4 billion to SAR 8.1 billion as of December 31, 2024.

The fall in debt was achieved through new refinancing, extension of previous financing and early repayment of some loans.

(Editing by Seban Scaria seban.scaria@lseg.com)

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