FIPCO secures SAR 19 mln credit facility from EXIM Bank

Logo of Filing and Packing Materials Manufacturing Co. (FIPCO)

Filing and Packing Materials Manufacturing Co. (FIPCO) signed a master Murabaha agreement with the Saudi Export-Import Bank (EXIM Bank) to secure a SAR 19 million Shariah-compliant short-term revolving facility.  

In a statement to Tadawul, the company explained that the agreement was signed on Sept. 13, with all legal procedures and signatures completed. The final version of the contract was received on Sept. 20. 

The facility has a 12-month duration, from the signing date until the end of Aug. 31, 2024. The loan is repayable 120 days after the withdrawal date. 

The financing wukk fund the company's working capital, particularly raw materials for export activities.  

FIPCO issued a promissory note worth the amount of the financing as a guarantee, as well as an endorsement as the second beneficiary of the insurance policy proceeds with a lumpsum insured covering a minimum of 100% of the credit facility. There are no related parties associated with this financing. 

The agreement is part of FIPCO's plan to increase its international market share and enter new regions worldwide. 

FIPCO exports a third of its products and intends to raise exports as part of its expansion strategy to enhance its international reputation and play its mandated role in supporting national transformation programs by enhancing non-oil exports in line with the Kingdom's Vision 2030.