Saudi manufacturer Arabian Plastic Industrial Company (APICO) has widened its Islamic financing arrangement with Saudi National Bank (SNB), lifting the total facility to SAR 60 million — roughly $16 million — as it gears up for operational growth.
The renewed agreement reshapes and enlarges an existing Shariah-compliant structure, giving APICO more breathing room to fund day-to-day liquidity needs while also backing capital expenditure tied to the expansion of its production lines.
The structure is split into two tranches:
A SAR 30 million revolving facility, renewable on an annual basis.
A separate SAR 30 million one-off facility with a four-year tenor (48 months).
For APICO, the refinancing move is not just about scale — it’s also about cost efficiency. The company said the updated arrangement is designed to secure more competitive credit terms and reduce borrowing expenses, sharpening its financial footing as it scales manufacturing capacity.
The original agreement underpinning the facility was signed in late February 2024, with this latest revision effectively doubling down on a banking partnership aimed at supporting expansion without straying from Shariah principles.
