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FINANCE-
Peer-to-peer digital lending marketplace Lendo will offer financing solutions to the industrial manufacturing sector under a new agreement with the Mineral Resources Ministry, according to state news agency SPA. These solutions include invoice financing and reverse financing.
What’s reverse financing? The mechanism allows manufacturers to receive early payment from a financial institution for their invoices. The company then repays the institution on the original invoice due date. This benefits manufacturers with quicker cash-flow and provides the company with extended payment terms.
ENERGY-
Taqa + Jera secure funding for their Saudi JV: The Abu Dhabi National Energy Company (Taqa) and Japan’s Jera reached financial close on their Saudi joint venture, Najim Cogeneration Company, according to a joint press release (pdf). The JV aims to develop the Saudi Aramco Total Refining and Petrochemical (Satorp) Strategic Expansion Industrial Steam and Electricity Cogeneration Plant in Jubail. Information about the investment size wasn’t disclosed.
The details: The new cogeneration plant will supply up to 475 MW of power and 452 tons per hour of steam from an advanced combined cycle gas turbine (CCGT) which will be supplied by Mitsubishi Power.
BACKGROUND: Taqa and Jera entered into a power purchase agreement with Saudi Arabia’s Satorp, a joint venture between Aramco and TotalEnergies, to develop the plant back in March. The plant will be developed by a special purpose entity 51% owned by Taqa, with Jera holding a 49% stake, on a 25-year build, own, and operate basis, extendable by five years.
M&A WATCH-
Malaysia-based Dialog Group is selling its entire 60% stake in its Saudi JV Jubail Supply Base (DJSB) to its JV partner Sedres Trading & Maritime Services for SAR 47.5 mn, according to The Edge Malaysia. The sale includes a payment of SAR 3 mn and a dividend of SAR 44.5 mn. Dialog will make a financial gain of SAR 900k from the sale, while its initial investment in the JV amounted to SAR 1.2 mn. The proceeds will be used to support Dialog’s working capital.
TELECOMS-
Saudi-based credit rating agency Simah Rating Agency (better known as Tassnief) has maintained its long term (A) and short term (T-2) ratings for Zain KSA, according to a press release. The rating action reflects the telecom company’s “robust credit profile,” strong subscriber base, reliable network coverage, and stable business and financial risk profile.
REAL ESTATE-
Tatweer Group’s development arm Al Gharbia is launching a new residential project, Roshan, in Northern Jeddah, the company said in a statement. The 1 mn sqm project will feature 614 residential plots, 20 commercial plots, seven schools, and seven public parks. There’s no publicly available information about the investment size or timeline.
AVIATION-
Flynas is adding five new routes connecting the Kingdom to the UAE, bringing the total number of operational routes to nine, up from four, according to a statement. The budget airline is set to launch three new destinations connecting Riyadh, Madinah, and Jeddah to Dubai, Abu Dhabi, and Sharjah starting 1-2 September.
Remember: Flynas is also looking to launch direct flights connecting Madinah to Bahrain and Doha starting next month. Meanwhile, the budget airline ran its inaugural direct flight to Egypt’s El Alamein International Airport last month.
DEBT WATCH-
Riyadh Steel has secured an SAR 10 mn bank facility with Saudi Awwal Bank, according to a disclosure to Tadawul. The one-year facility is earmarked for shoring up the steelmaker’s working capital.
CLIMATE-
Sail and King Abdulaziz University partner to protect marine environment: Marine Operations for Environmental Services (Sail), a subsidiary of PIF-owned Saudi Investment Recycling Company, signed an MoU with King Abdulaziz University to boost efforts for protecting the Kingdom’s marine environment, state news agency SPA reports. The agreement focuses on scientific research and surveys, laboratory development, and implementing training programs on dealing with oil spills.
