National Industrialisation Company, one of the top chemicals and industrial conglomerates in Saudi Arabia, has said one of its subsidies has raised SR6.96bn ($1.86bn) in financing from banks.

Tasnee, as the company is known, said its unit, The National Titanium Dioxide Company (Cristal), has signed a syndicated Islamic finance and working capital deal with its existing banks.

The financing agreement has a bullet repayment at the end of the third year, with an option for Cristal to extend for an additional two years if conditions are met, Tasnee said in a statement on the Saudi Stock Exchange (Tadawul), where its shares are traded. It did not provide the pricing details or the names of the lenders who have provided the funds.

“The purpose of the facilities is to refinance the company’s existing liabilities,” the Tasnee statement said, adding that the new funding deals will provide Cristal, which is 79 per cent owned by Tasnee, with a viable capital structure and will provide a solid foundation for future growth.