Saudi food company Modern Mills has signed a SAR235 million ($62.7 million) Shariah-compliant credit facility agreement with Saudi Awwal Bank (SAB) to finance a new feed mill project and support working capital needs, the company said.

The financing includes a SAR120 million capital expenditure facility with a tenure of eight years and a SAR115 million revolving credit facility with a one-year tenure.

The facilities will finance the company's new feed mill project in Al-Jumum and provide funding for its working capital requirements, Modern Mills said Modern Mills in its filing to Saudi Exchange. 

The financing is secured by a promissory note, it added.-TradeArabia News Service