DUBAI: Saudi Arabia's National Industrialisation Co. (Tasnee) signed a SR1.2 billion ($319.4 million) Islamic loan it will use to part-fund buying a further stake in its subsidiary Cristal, the industrial manufacturer said on Thursday.

The five-year murabaha loan — a Shariah-compliant cost-plus-profit arrangement — is with Riyad Bank and Saudi British Bank.

It has a one-year grace period and the option for a one-year extension, with payment due in equal semi-annual installments.

In December, Tasnee bought a further 13 percent in Cristal — one of the world's largest producers of titanium dioxide — for SR1.8 billion.