NADEC subsidiary signs financing agreement with ADF for up to SAR 1.1B

National Agricultural Development Co. (NADEC) said that its subsidiary, AlRai National Livestock (a limited liability company, 51% owned by NADEC), signed a financing agreement with the Agricultural Development Fund (ADF) with a ceiling of SAR 1.1 billion.

The funds will be used to establish a project focused on intensive livestock breeding (sheep and goats), reproduction, and meat production, NADEC said in a statement to Tadawul.

The amount will be disbursed in stages based on the project's progress and the submission of required documents.

The 15-years agreement was signed on March 23, with three years grace period.

The company clarified that the partners provided guarantees in proportion to their shares in the company, with NADEC offering one of its lands in Wadi Al-Dawasir as collateral, in addition to providing corporate guarantees from the partners in accordance with the approved format by the ADF.

The agreement was signed under the sponsorship of the Minister of Environment, Water and Agriculture (MEWA) Abdulrahman AlFadley, the statement noted, adding that the project aims to enhance local red meat production by developing integrated facilities for livestock breeding, contributing to increased domestic production.

This project is part of NADEC’s strategy to strengthen food security within the framework of Saudi Arabia’s Vision 2030.