Tadawul-listed Saudi Kayan Petrochemical lined up SAR 8.1 bn in new murabaha facilities to refinance its total outstanding debt, extending maturities to 2034 from an initial payment deadline of 2027, the Sabic subsidiary said in a filing to the exchange. Procedures to settle and replace the firm's loans will be finalized today, with the financial impact of the refinancing scheme expected to appear in the company’s 1Q earnings.

IN CONTEXT- The Sabic unit has reduced its total outstanding debt to SAR 8.1 bn as of December of last year — through a mix of refinancing, extension of earlier loans, and early repayments — bringing it down from SAR 34.4 bn during the construction phase of its facilities, the disclosure read.

SOUND SMART- A murabaha facility is a shariah-compliant loan alternative in which a bank purchases assets on behalf of a client and sells it back at a pre-agreed earning margin, with payments made in installments. Unlike conventional loans, murabaha avoids charging interest and instead structures the transaction as a cost-plus sale, in line with Islamic finance principles.

ADVISORS- Saudi National Bank (SNB), Banque Saudi Fransi, and Alinma Bank acted as lead managers for the facility.

ICYMI- The Jubail-based chemicals producer narrowed its net loss to SAR 1.8 bn last year, down from SAR 2.1 bn in 2023, benefiting from higher average selling prices. Revenue increased 6.8% y-o-y at SAR 8.7 bn over the same period.

IN OTHER DEBT NEWS-

Nomu-listed Shalfa Facilities Management lined up one-year SAR 75 mn credit facilities from the Saudi Investment Bank, to back project guarantees, site preparation, and working capital needs, it said in a filing to the exchange.

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