Saudi's Sadara secures $10.5bn project funding

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Sadara Chemical Co, a joint venture between Saudi Aramco and Dow Chemical , confirmed on Monday that it had signed loan facilities to support the construction of a $19.3bn petrochemical complex.

Loan agreements worth SR39.375bn ($10.5bn) were signed on Sunday with local and foreign banks, Export Development Bank Canada, Islamic Development Bank, the Saudi Public Investment Fund and export credit agencies, the statement to the Saudi stock exchange said.

The loans will run until June 30, 2025, with the first drawdown of funds expected in the third quarter of 2013. Added to a SR7.5bn sukuk (Islamic bond) sold at the beginning of April, the total financing package for the plant totalled SR46.88bn, the statement added.

Reuters reported on Sunday that loan agreements had been signed for a financing package worth around $12.5bn, citing banking sources.

The facility, located at Jubail Industrial City in Saudi Arabia's Eastern Province, will be the world's largest chemical complex ever built in a single phase. It will produce over 3 million tonnes of petrochemicals a year when completed in 2016.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed