Molan Steel Reschedules Two Murabaha Installments to January 2027 Under Sukuk Facility

Molan Steel Co. Rescheduled two Murabaha financing installments due October 31, 2026, to no later than January 31, 2027, deferring SAR 2.05 million, Argaam reported. The company said the deferred amount comprises SAR 1.5 million in principal and SAR 554,320 in Murabaha profits, subject to the financier's approval.

Molan Steel's Murabaha Deferral Terms

In a statement to Tadawul, Molan Steel said the SAR 10 million financing is split into two issuances of SAR 5 million each, dated May 7, 2025, and May 25, 2025. The facility is provided by the company's sukuk holders through the Afaq Capital platform. Afaq was appointed in March as sole arranger for a planned SAR 20 million sukuk issuance, according to Argaam.

The company said the financing period, which runs from each issuance date to the final installment on April 30, 2029, remains unchanged after the rescheduling. The arrangement covers only the two installments due October 31, 2026.

Guarantees for the rescheduled financing consist of a promissory note issued by Molan Steel in favor of the special purpose entity's trustee, covering the full outstanding debt. The company said no additional guarantees were provided for the rescheduling and that there are no related parties to the deal.

Molan Steel said the rescheduling agreement was signed on October 29 to align the repayment schedule with its expected cash flows.

Molan Steel's Earlier Restructuring Steps

Molan Steel approved a revised plan on October 4, 2026, to address accumulated losses and financial restructuring, replacing an earlier plan, Argaam reported. The plan includes six phases, among them a share consolidation and capital increase, and will be submitted to an extraordinary general meeting.

On September 30, 2026, Molan Steel signed a payment, reduction and final release agreement with Yara International, receiving a SAR 1.05 million reduction on a SAR 7.88 million settlement balance, Argaam reported. The company also signed an agreement for a SAR 4.6 million interest-free loan from major shareholder Dar Al-Takamul Holding Group, according to Argaam.

Molan Steel's January 2027 Payment Deadline

The two rescheduled installments are due for payment no later than January 31, 2027, subject to the financier's approval, the company said.