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Methanol Chemicals rises on SR832m Murabaha refinancing facility

The Saud Tadawul index Tasi advanced 0.46% on Monday, closing at 6,657.63 points. Shares of Methanol Chemicals Co. added 0.70%, ending at SR14.40. Earlier in the day, Methanol Chemicals announced it agreed on a Murabaha Refinancing Facility Agreement compatible with the Islamic Shariah "at a competitive rate" with consortium of banks, namely SABB, Riyadh Bank and Samba for a total loan amount of SR832m. Under Murabaha, banks purchase assets and re-sell these assets to a client above par, which the customer repays in predefined annuities including an agreed margin of profit. "Methanol Chemicals is liable to repay the sanctioned loan of SAR 832 million in 14 semi-annual installments ranging from SR 32m to SR55m commencing from 15 July 2011 and ending 15 December 2017," the statement says. Market bellwether Sabic closed even at SR104.75. Year-to-date the Tasi gained 0.56%, the best performance among all Arab stock markets and the only gaining composite in 2011 (as yet).