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Modern Mills Co. has officially signed a Shariah-compliant credit facility agreement valued at SAR 235 million with Saudi Awwal Bank (SAB). The funding structure comprises a long-term capital expenditure facility of SAR 120 million spanning eight years and a SAR 115 million revolving credit facility with a one-year tenure. The company has provided a promissory note as collateral to secure the financing package.
This capital injection is earmarked to finance Modern Mills' expansion, specifically the construction of its new feed mill project located at Al-Jumum, while also bolstering its operational working capital. Securing long-term Islamic financing demonstrates strong banking support for the company's growth strategy and market footprint expansion within the Kingdom's food security sector.
For investors and market participants on Tadawul, the strategic expansion into feed production could drive long-term revenue growth and operational scalability. Market watchers will be tracking the execution timeline of the Al-Jumum project and its financial contribution to Modern Mills' future earnings reports.
