Riyadh, Saudi Arabia — Saudi Arabian firm Advanced Petrochemical Company said Monday it has obtained Sharia-compliant financing valued at SAR 2.20 billion ($586.6 million) from Alawwal Bank to pay back the existing credit facilities and for financing general corporate purposes.
The company said in Tadawul disclosure that the financing, which has a duration of five years, was secured by promissory notes.
“The new credit facility agreement will have a positive financial impact by obtaining better commercial terms and competitive prices,” the company said.
Advanced Petrochemical saw its first quarter net profit drop by nearly 74 percent year on year, from 164 million riyals in Q1 2022 to 43 million riyals in Q1 2023 mainly due to decrease in sales prices by 27 percent, decrease in sales volume by 6 percent and an increase in share in loss on SK Advanced investment by SR 7 million.