Jamjoom Pharma offers SAR 16.6M guarantee for Algeria JV loan

Logo of Jamjoom Pharmaceuticals Factory Co.

Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) said its joint venture (JV) in Algeria, Jamjoom Algeria Lil Dawa SPA, signed a Shariah-compliant, short-term revolving banking facility worth SAR 34 million (DZD 1.2 billion) with Al Baraka Bank.

Jamjoom Pharma owns a 49% stake in the JV.

To support the issuance of this facility, the company provided a corporate guarantee to the bank in accordance with Algerian Law and in proportion to the company’s shareholding in the JV, according to a Tadawul filing.

Thus, the company will guarantee SAR 16.6 million (DZD 591 million).

The banking facility is to fund Jamjoom Algeria’s short-term working capital requirements.

Jamjoom Algeria is a related party, as the company's board members, Mahmoud Yousuf Jamjoom and Ahmed Yousuf Jamjoom, have a direct interest due to their membership on the board of Jamjoom Algeria. Meanwhile, board members Yousuf Mohammed Jamjoom, Mohammed Yousuf Jamjoom, and Alaa Yousuf Jamjoom have an indirect interest.