Tanmiah Food subsidiaries land SAR 320 mn in fresh loans

Two subsidiaries of Tadawul-listed Tanmiah Food have secured a combined SAR 320 mn in credit facilities. These include SAR 120 mn in Shariah-compliant credit facilities for Tanmiah’s fresh poultry unit, Agricultural Development Company (ADC), from the National Bank of Kuwait (NBK), according to a filing to Tadawul. Desert Hills Veterinary Services (DHV) separately secured SAR 200 mn in Shariah-compliant credit facilities from Alinma Bank for a one-year period, according to a separate disclosure to the exchange.

Where will the money go? ADC’s loan will be funneled towards supporting the company’s growth, while DHV’s credit facility is earmarked for meeting a working capital requirement and powering growth, the disclosures said.

ICYMI- DHV inked a shareholder agreement late last year with Ukraine’s largest poultry producer and exporter MHP to set up a SAR 200 mn poultry farm in Riyadh with an initial capacity of 1 mn parent stock to produce some 175 mn hatching eggs a year. The JV — in which DVH will hold a majority 55% stake — comes in a bid to boost the Kingdom’s poultry production which hit a monthly record of 100 mn kg in February.