Sinad Secures SAR 300M Alinma Credit for General Investments

Sinad Holding Co. signed a long-term Shariah-compliant credit facility worth SAR 300 million with Alinma Bank on June 11, the company said in a Tadawul statement.

The financing term runs from the drawdown date through Jan. 31, 2029, with a renewal option subject to mutual agreement. Sinad pledged a promissory note and a share pledge as collateral.

The facility will fund the company's general investments. No related parties were involved in the deal, according to the statement.

The credit line adds to Sinad's debt stack at a time when Saudi-listed industrial and holding companies are tapping bank financing for working capital and expansion. Alinma Bank has been active in corporate lending this year, with several Tadawul-listed firms announcing similar Shariah-compliant facilities.

For Sinad, the SAR 300 million line provides liquidity headroom without diluting equity. The five-year tenor, with the renewal clause, gives the company flexibility on repayment timing. The share pledge as collateral suggests the bank secured the loan against Sinad's own equity holdings, a common structure in Saudi corporate lending.

The read-through for the sector is straightforward: bank credit remains available and competitively priced for Tadawul-listed companies with collateral to offer. Companies with unencumbered shareholdings or real estate assets are likely to find similar terms. The constraint is not availability but the willingness to pledge assets, which varies by management's risk appetite.

Sinad did not disclose the margin or profit rate on the facility. The company's last reported financials showed total debt of SAR 1.2 billion as of Q1 2025, with a debt-to-equity ratio of 0.8x. The new facility adds 25% to the existing debt book.

Investors tracking Sinad's leverage profile will watch whether the general investments target working capital, capex, or potential acquisitions. The company's cash conversion cycle has stretched in recent quarters, and a liquidity injection could ease pressure on payables. The share pledge also creates a contingent risk: if Sinad's stock price falls sharply, the bank could call for additional collateral.

Alinma Bank's willingness to extend a five-year facility with a renewal option signals confidence in Sinad's credit profile. The bank has been expanding its corporate loan book, with total credit growing 12% year-over-year in Q1 2025. For Sinad, the deal locks in funding before any potential rate changes from the Saudi Central Bank.