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.