Mezzan Holding (MEZZ.KW) announced that it has signed three credit agreements with an Islamic bank in Kuwait worth a total of KWD53.75mn. The term of the agreements is one year, effective 1 April 2017 (ending 31 March 2018). One agreement has a credit limit of up to KWD19.75mn and will finance the company’s working capital requirements, to be repaid by transferring the amount from the company's trade receivables to the bank. A second agreement worth KWD19mn will be allocated for the supply contracts of Mezzan's products to social corporations and the Ministry of Health in Kuwait. The third agreement for KWD15mn consist of Murabha contracts and letters of credit to finance the operations requirements of Mezzan and its subsidiaries. There is no financial impact on the company as a result of the credit facilities except that its trade receivables will be reduced by the borrowed amount, which will be used to pay off a portion of the company's loan. 

Mezzan Holding: KWD1.02 as of 30 Mar. 2017, Rating: Buy, TP: KWD1.18/share, MCap: USD1,058mn, MEZZAN KK/MEZZ.KW