Arabian Mills Cuts Debt With SAR 50M Murabaha Prepayment

Arabian Mills for Food Products Co. said its board approved a voluntary prepayment of SAR 50 million under its existing Murabaha agreement.

The prepayment reduces the company's outstanding debt under the Islamic financing facility, lowering interest-cost exposure and freeing up cash flow. Arabian Mills framed the move as part of efforts to support sustainable financial performance.

The company did not disclose the remaining balance under the Murabaha facility or whether further prepayments are planned. The decision came at a regularly scheduled board meeting, the statement said.

Arabian Mills, which went public on the Saudi Exchange in late 2023, produces flour, feed, and other grain-based products. The company has been working to trim leverage since listing, with the SAR 50 million prepayment representing roughly 10% of the net proceeds from its initial public offering.

The board's action follows a period of elevated raw-material costs that have squeezed milling margins across the sector. Lower debt service costs give Arabian Mills more room to manage input-price swings without cutting into operating results.

Shareholders who bought into the IPO at SAR 47 per share have seen the stock trade above that level for most of 2025. The prepayment signals management's confidence in the company's cash-generation ability, though the impact on the balance sheet remains modest absent disclosure of the total facility size.