Financing a portion of (NIPC) share in Ethylene & Polyethylene Complex:
Samba signs a SR1390 million financing agreement with National Industrialization Petrochemicals Company
Samba Financial Group has signed an agreement worth SR 1390 millions with National Industrialization Petrochemicals (NIPC) Company, an affiliate of National Industrialization Company, for financing the incorporation of Saudi Ethylene & Polyethylene Company, a subsidiary of NIPC. Pursuant to the Agreement, made in Riyadh on Sunday 23rd April 2006 by Eng. Mubarak Al-Khafrah, NIPC Chairman & Managing Director and Mr.Eisa Al-Eisa, Samba Managing Director & CEO, Samba will provide necessary financing in two facilities: The first one is a SR 1 billion Murabahah bridge loan for financing the Company share in the capital of Ethylene & Polyethylene Complex, whereas the second one is a SR390-million five-year Islamic Murabahah loan for financing NIPC utility facilities at Al-Jubail Industrial City.
The present Agreement is part of series of activities conducted by National Industrialization Company, specifically in petrochemical area.Following the Agreement conclusion, Eng. Al-Khafrah commented that the facilities mentioned in the Agreement were based on the Islamic Murabahah, in line with National Industrial Company & NIP directive.
"The Company Board decided that all the Company loans & deposits with its customer banks shall be based on the Islamic Murabahah," he said adding that all direct financing for the National Industrial Company & NIPC is made in Islamic Murabahah. In addition, the Company is intending to refinance sister & subsidiary companies (including Saudi Polyolefin Company), an NIPC subsidiary, by transforming all their loans into financing in accordance with the Islamic Shariah provisions. Eng. Al-Khafrah further explained that this financing would enhance the company's expansion plans & activities to comply with its obligations, particularly in petrochemical area. He finally appreciated Samba & Mr.Al-Eisa for the facilities that aim at financing the private sector & its commercial & industrial activities.
On the other hand, Mr.Al-Eisa said that the Agreement materializes the constructive cooperation between the two parties thereto that existed long ago, and stresses the essential role played by Samba for financing vital projects & provision of necessary liquidity for implementing companies plans. "The philosophy adopted by Samba is to support the private sector efforts of driving the economic growth & to diversity the income sources", concluded Al-Eisa, hailing National Industrialization Company as one of the prominent landmark that achieved qualitative leap in its business course.