Methanol Chemicals Company “Chemanol” announced its intention to pay 122 million riyals to the Saudi Industrial Development Fund, representing 50% of the existing loan, as well as early repayment of 151 million riyals to lending banks, representing 35% of the outstanding loan, during this week, with a desire to improve efficiency. finance and reduce financing costs.
These payments will have a positive impact on the current ratio (Current Ratio) which was 1.98 in the first quarter of this year and is expected to rise to more than 2.1.
Chemanol said in a statement published on the Saudi “Tadawul” group website, that the loan-to-equity ratio (Debt to Equity Ratio) will decrease from 0.6 in the first quarter to less than 0.34 after payments are made, which reflects the company’s good financial position.
There will be a decrease in financial costs by about 4.5 million riyals during the current year.
It is noteworthy that the outstanding loan of the Saudi Industrial Development Fund will be 123 million riyals, while the outstanding loan to banks will be 277 million riyals, knowing that this will not affect the loan period according to the schedule announced on February 28, 2021 and March 23, 2021.