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Tue 5 Jan 2010 09:11 PM

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Yanbu Cement gets $80m loan from Saudi fund

Loan to cover 14% of $581.3m project with remaining costs covered by company and banks.

Yanbu Cement Co, a Saudi cement maker, has got a $80 million loan from the Saudi Industrial Development Fund to finance an expansion project.

The loan will cover 14 percent of the $581.3 million project, the Jeddah based company said in a statement on the Saudi bourse website today.

The remaining cost of the project will be funded by the company and bank loans.

Saudi companies, like Saudi Cable Co and Halwani Brothers Co, have sought loans from the government fund as private segment bank lending tightened in the Arab world’s largest economy.

Saudi Cable, a cables and reels maker, received $42.79 million in a long term loan yesterday to help finance the cost of a power cable plant expansion.

The Saudi Industrial Fund, established in 1974, provides loans that will cover 50 percent of the cost of projects located in the world’s largest oil exporter.

The fund lends as much as $159.99 million for joint ventures with a maximum repayment period of 15 years.

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