SAUDI ARABIA —Filling and Packing Materials Manufacturing Company (FIPCO) has renewed its Islamic Sharia-compliant credit facilities with Riyad Bank, securing financing of SAR 43.614 million. The agreement was concluded on 30 September 2026, with the completed and signed documentation received by FIPCO on 2 November 2026. The facilities carry varying repayment periods, ranging from 12 months for working capital products to 48 months for medium-term financing, depending on the facility type.
The financing is intended to cover the manufacturer’s routine operating requirements and liquidity needs. Its permitted uses include working capital, letters of credit, letters of guarantee and short-term credit facilities. Part of the funding will also be allocated to replacing selected machinery and equipment, linking the banking arrangement to the company’s production infrastructure and equipment renewal requirements.
The facilities are secured through promissory notes issued in favour of Riyad Bank, alongside other guarantees and commitments specified in the financing documents. FIPCO stated that no related parties are involved in the agreement. The disclosure does not specify how the total facility amount is divided among the different financing products or identify the machinery scheduled for replacement.
The renewed credit arrangement is relevant to Saudi Arabia’s packaging materials and industrial manufacturing sector, where access to working capital supports procurement, production continuity and supplier payments. Letters of credit and guarantees can also facilitate transactions with domestic and international suppliers, while medium-term financing provides a funding route for equipment replacement without requiring the entire expenditure to be met from immediate operating cash flows.
For FIPCO, the facilities provide financial flexibility across both day-to-day operations and selected capital requirements. The machinery component may support the maintenance or modernisation of its production capabilities, although the company has not disclosed specific capacity or efficiency targets associated with the replacements. Riyad Bank, a Saudi commercial bank providing corporate and individual banking services, continues to act as the financing institution. The arrangement illustrates the role of Sharia-compliant bank credit in supporting the working capital and equipment needs of Saudi industrial businesses.
