Saudi Kayan Petrochemical Company, an affiliate of Saudi Basic Industries Corporation (Sabic), said it has signed two Islamic financing deals totalling SR2.63 billion ($700 million) .

The funds will be used by Kayan to fund an increase in working capital, as well as the completion of factories under construction, the company said

The company inked a SR1.5 billion ($400 million) agreement with National Commercial Bank, the kingdom's largest lender by assets, for up to 15 years, and a SR1.13 billion ($301 million) facility with Samba Financial Group, another Saudi Arabian lender, for up to 10 years.

Both deals are under a Murabaha arrangement, a cost-plus sale arrangement which is commonly used in many parts of the Islamic world.

The funds will be used by Kayan to fund an increase in working capital, as well as the completion of factories under construction, the company said.-Reuters