Saudi Cable Company announced that, in a move aimed at strengthening its financial position and improving liquidity management, it has reached an agreement to reschedule an interest-free loan of SAR 107.9 million from Ibrahim Al Rajhi. This announcement was made in an official statement published by the company on the Saudi Stock Exchange (Tadawul) website, detailing the financial terms and the new repayment schedule.
the reasons and objectives behind the rescheduling
, stating that the primary motivation was the short timeframe between the loan disbursement date and the first payment due date, which had placed significant pressure on the company's cash flow. Through this strategic move, management aims to reduce outstanding financial obligations during the first quarter, directly contributing to improved working capital and positively impacting operational activities and production continuity.
The details of the new repayment mechanism
under the new agreement have been revised to offer greater flexibility and alignment with the company's projected cash flows. Previously scheduled for January and March 2026, the new mechanism is as follows:
1. A payment of SAR 45 million is due by the end of the first quarter of 2026.
2. The remaining balance of approximately SAR 62.9 million will have its repayment schedule determined and announced later.
The company confirmed that it has provided promissory notes for the full loan amount as collateral, and these notes will remain valid according to the new repayment schedule.
The economic context and significance of this step:
This move comes at a time when Saudi Cable Company is striving to overcome the financial challenges it has faced in recent periods. Debt management and restructuring of obligations are crucial components of financial recovery plans for major industrial companies. Securing an interest-free loan from a major shareholder or related party is an indication of the owners' support for the company's progress and their commitment to getting it back on track without burdening it with additional financial obligations such as high bank interest rates.
Governance and Related Parties
: The company noted that this transaction falls under the category of related party transactions, as Mr. Turki bin Ibrahim bin Mansour Al Rajhi is a member of the Board of Directors (non-executive member). In accordance with the governance and transparency standards adopted in the Saudi financial market, this contract and the details of the rescheduling will be presented to the General Assembly of Shareholders for a vote to ensure the integrity of the regulatory procedures.
