Shareholders of Saudi-based City Cement Co have approved a 26 per cent capital cut to SAR1.4bn (US$8.34m) from SAR1.89bn, on having a capital surplus, during the extraordinary general meeting held on 25 August 2020, the company said.
 
The capital will be decreased as the company has excess capital. The capital reduction will be financed from the company's internal resources. However, the cement producer signed Islamic loan agreements with Saudi British Bank and Riyad Bank at a total value of SAR50m each, to be used in the capital reduction process.
 
The company added that the capital cut will not have any material impact on its obligations, operations, operating or financial performance, expecting the move to reflect positively on profitability and key performance indicators.