Al Kathiri’s unit inks SAR 23 mln facility agreement with SIDF

Al Kathiri Holding Co.’s wholly-owned subsidiary, Alian Industrial Co., has inked a SAR 23.2 million credit facility agreement with the Saudi Industrial Development Fund’s (SIDF) to finance the firm’s three-dimensional concrete panels factory.

The seven-year facility will be repaid semi-annually, and is secured against a mortgage on the project assets and a corporate guarantee from Nomu-listed Alkathiri holding, the company said in a bourse statement.

The project, estimated to cost SAR 32.2 million, will be 75 percent funded by the facility and 25 percent by the firm’s own funds.

The factory is set to use Italian technology to produce polystyrene sheets reinforced by iron and concrete, and will reach full capacity over three years producing 1.3 million square meters per year for 1,000 housing units a year.

First year estimated sales are expected to reach SAR 30 million and SAR 60 million by the third operational year, the statement said.

Construction works are estimated to begin in Q4 2019, and production is estimated to start in Q3 2020.

The relevant financial impact will be defined later.

The deal has no related parties, it added.