Saudi Paper Manufacturing Company Secures $40 Million Islamic Financing to Boost Liquidity and Restructure Debt

Riyadh | EcoPulse24

The Saudi Paper Manufacturing Company has entered into a Sharia-compliant credit facility agreement with Kuwait Finance House (Bahrain), comprising a $40 million financing package. The facility, signed on January 19, 2026 (corresponding to 30-07-1447H), is designed to support the company's working capital needs and includes a medium-term facility. The agreement features two main components: a 12-month renewable working capital facility and a 48-month medium-term facility with a 6-month grace period. As collateral, the company provided a promissory note equivalent to the value of the facility. The primary objectives are to enhance liquidity for operational needs, support planned expansion in raw material procurement, and restructure medium-term debt to improve cash flows. The company clarified that no related parties are involved and highlighted the preferential and competitive profit margins of the facility.

EcoPulse24 Analysis:
The agreement reflects a strategic move to improve liquidity management and strengthen the company’s financial structure without putting immediate pressure on cash flows. Combining working capital financing with extended maturities grants greater operational flexibility and reduces refinancing risks. The preferential, Sharia-compliant terms and absence of related parties enhance transparency and support financial sustainability, positioning the company to efficiently pursue its operational and expansion plans in the coming period.