Modern Mills secures $62.7M financing for Saudi feed mill

SAUDI ARABIA – Modern Mills Co. has secured a SAR 235 million (US$62.7 million) Shariah-compliant credit facility from Saudi Awwal Bank (SAB) to finance its new animal feed mill in Al-Jumum, Makkah, and support working capital requirements.

According to a statement to the Saudi Exchange (Tadawul), the financing comprises a SAR 120 million (US$32.0 million) capital expenditure facility with an eight-year tenure and a SAR 115 million (US$30.7 million) revolving credit facility with a one-year tenure.

Modern Mills provided a promissory note as collateral for the financing.

The latest funding supports the company’s ongoing expansion of its animal feed production capacity as Saudi Arabia seeks to strengthen domestic food and agricultural supply chains.

Feed mill to produce 422,000 tonnes annually

Modern Mills previously announced plans to establish the Al-Jumum feed mill with an investment of SAR 150 million (US$40 million). 

The facility is designed to produce approximately 422,000 tonnes of animal feed annually, serving both poultry and livestock producers.

The company had previously targeted commercial production in the fourth quarter of 2026, subject to regulatory approvals.

The project forms part of Modern Mills’ strategy to expand its milling and nutrition operations while supporting Saudi Arabia’s food security objectives under Vision 2030.

The new financing also increases the company’s financial capacity as it moves towards commissioning the facility. 

The SAR 120 million capex facility will specifically support project expenditure, while the revolving facility provides additional liquidity for working capital.

Saudi Arabia’s animal feed sector has been expanding alongside demand for poultry, meat and dairy products. 

The country’s compound animal feed consumption was estimated at 3.47 million tonnes in 2022 and was projected to reach approximately 5 million tonnes by 2030, according to market estimates cited by Modern Mills in its earlier expansion plans.

The company has been expanding its position in the Saudi milling and nutrition market since its listing on the Saudi Exchange in March 2024.

The Al-Jumum project is expected to add significant domestic feed production capacity once operational, enabling Modern Mills to supply both poultry and livestock markets from a new facility in the Makkah region.

The latest financing comes as Saudi Arabia continues to promote domestic agricultural production and food supply chain development, with animal feed forming an important input for the country’s livestock and poultry sectors.

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