Qassim Cement signs SAR 400M loan with SIDF to fund new production line
What's the deal? Qassim Cement CompanyDealroom has a profile for this one. Try Dealroom → signed a SAR 400 million ($106.7 million) financing agreement with the Saudi Industrial Development Fund (SIDF)Dealroom has a profile for this one. Try Dealroom →, according to a TadawulDealroom has a profile for this one. Try Dealroom → statement. The post-IPO debt deal carries a nine-year tenor, with a two-year grace period and a seven-year repayment schedule.
What's the endgame? The financing will help fund a fourth production line at the company's plant, with a capacity of 10,000 tons per day. The new line will replace some existing production lines.
Why now? Qassim Cement signed a SAR 1.12 billion contract with Sinoma International EngineeringDealroom has a profile for this one. Try Dealroom → in August 2025 to build that fourth line at its Buraydah plant. All required signatures for the SIDF financing were completed on 13 August 2026, with no related parties involved.
What's behind the terms? Guarantees against the financing include a promissory note, assignment of insurance policies for the new project in favour of the fund, and a pledge of assets. The company said it aims to combine the SIDF loan with Shariah-compliant credit facilities from commercial banks to meet its needs and reduce financing costs.
The signal: The deal ranks among the larger financings in its class, underscoring how Saudi industrial firms are tapping state-backed lending to expand capacity.
Read more: Argaam
Image credit: Albert Bridge
