The National Agricultural Development Company (NADEC) Announces the Amendment to the Financing Agreement of its Wholly Owned Subsidiary, Al Raie National Livestock Company, with the Agricultural Development Fund
| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement of the National Agricultural Development Company (NADEC) published on the Saudi Exchange website on 24/03/2025G regarding the signing by Al Raie National Livestock Company of a financing agreement with the Agricultural Development Fund to finance the establishment of an intensive livestock farming project for sheep and goats, breeding and meat production, with a maximum financing amount of SAR 1,106,188,176. The financing will be disbursed in phases based on project implementation progress and upon submission of the required documents. The National Agricultural Development Company (NADEC) announces the amendment to the financing agreement entered into between its wholly owned subsidiary, Al Raie National Livestock Company, and the Agricultural Development Fund. The amendment includes reducing the financing ceiling from SAR 1,106,188,176 to SAR 750,000,000 and extending the grace period by one additional year to four (4) years. |
| Date of singing the rescheduling of finance | 2026-09-29 Corresponding to 1448-04-18 |
| Financing entity | Agricultural Development Fund |
| Reasons for rescheduling | The financing agreement was amended at the request of Al Raie National Livestock Company, following a reassessment of the project implementation phases and financing structure, based on studies and reviews conducted by the Company and in line with relevant best practices. This review resulted in further development of the project implementation model and a reduced need for external financing, enhancing capital allocation efficiency, financing structure flexibility, and the management of the project’s cash flows. The amendment also included extending the grace period by one additional year to four (4) years. |
| The Financing amount and rescheduled part | The maximum financing ceiling has been reduced from SAR 1,106,188,176 to SAR 750,000,000. |
| Financing Duration, before and after Rescheduling | Before the amendment: 15 years, including a grace period of 3 years. After the amendment: 16 years, including a grace period of 4 years. |
| Guarantees offered for the rescheduled Financing | NADEC has previously provided guarantees related to the financing, whereby NADEC has mortgaged certain areas of one of its lands located in Wadi Al-Dawasir, in addition to providing a corporate guarantee. The Company will, in coordination with the Agricultural Development Fund, review the corporate guarantee and the existing mortgages to align them with the amended financing cap. It is not expected that this will result in NADEC providing any additional mortgages. |
| Related Parties | None. |
| Additional Information | None. |
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