APICO secures $29mn from Saudi Investment Bank for business growth

By Arya M Nair, Official Reporter
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Saudi Contractors Authority-Ventures Onsite Partnership

The Saudi-based Arabian Plastic Industrial Company (Apico) has secured funding facilities worth $29 million from Saudi Investment Bank (SAIB) to further expand its business core production activities as well as boost the company’s growth.

A leading provider of superior injection molding production services, Apico said the finance facilities will be in the form of working capital and a medium-term loan. These funds will eventually be used for setting up a new production facility in the capital Riyadh, stated Apico in its filing to the Saudi bourse Tadawul.

A land lease contract had already been signed with Saudi Authority for Industrial Cities and Technology Zones (Modon) in this regard last year, it stated.

The funding facilities include renewals of current banking facilities, a working capital facility limit of $12.5 million for a tenure of 12 months as well as a medium-term loan of $7,98,594 to be matured during FY 2023, it added.

On the new banking facilities, Apico said the working capital limit of $9 million will be available for 12 months combined with a sublimit of a medium-term loan of $8 million to be settled in 26 quarterly installments after 6 months of compiling the complete loan drawdowns.

Additional working capital limit with an amount of $5.8 million combined with sublimit of medium-term loan $5.2 million to be settled in 22 quarterly installments after 6 months of compiling the complete loan drawdowns.

The guarantees offered for the financing include promissory notes covering the full exposure provided by the Saudi group and a corporate guarantee from Omar Abu Bakr Balubaid Company covering the full exposure, it added.

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