Saudi Arabia's Sahara Petrochemical Company said its subsidiary Al Waha Petrochemicals had secured SR1.96 billion ($522 million) from two local lenders to refinance an existing Islamic loan.

The previous loan amount wasn't given but the firm said the deal had been signed in 2006 with a number of commercial lenders and two government funds -- the Public Investment Fund and the Saudi Industrial Development Fund -- during the project phase.

The new loan had more favourable pricing and conditions than the existing deal. The facility was provided by Saudi British Bank and Banque Saudi Fransi and lasts until the end of 2026, Sahara said in the statement.

The company also signed a revolving Murabaha-structured facility worth SR375 million from Saudi British Bank for one year, which can be renewed yearly to support the working capital and the company's general operations, it said.

Murabaha is a cost-plus sale arrangement which is commonly used in many parts of the Islamic world.  - Reuters