JEDDAH: Saudi Kayan Petrochemical Company, an affiliate of Saudi Basic Industries Corp. (SABIC), has signed two Islamic financing deals totaling SR2.63 billion, it said in a statement.

It signed an SR 1.5 billion agreement with National Commercial Bank for up to 15 years, and an SR1.13 billion facility with Samba Financial Group for up to 10 years.

Both deals are under a Murabaha arrangement, a cost-plus sale arrangement which is commonly used in many parts of the Islamic world.

The funds will be used by Kayan to fund an increase in working capital, as well as the completion of factories under construction, the company said.