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Wed 31 Dec 2008 08:12 PM

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Saudi Kayan completes deal for $6bn complex

Company 35%-owned by SABIC obtains $533mn loan from state-owned SIDF.

Saudi Kayan Petrochemical Co has secured $6 billion financing for its industrial complex after it obtained a $533 million loan from a state-owned fund, the company said on Wednesday.Kayan signed an agreement on Wednesday with the Saudi Industrial Development Fund for financing, the company said in a statement posted on the bourse website.

"The completion of [Kayan's] project's financing requirements has now been concluded," Kayan's Chief Executive Mutlaq Al-Morished was quoted as saying in the statement.

Kayan is 35 percent owned by state-controlled Saudi Basic Industries Corp (SABIC).

The company signed a loan agreement in May with a group of banks, that included ABN AMRO, Bahrain's Arab Banking Corp, France's BNP Paribas SA and HSBC Holdings Plc.

Kayan hopes to start commercial production in the fourth quarter of 2010.

The project will have an annual production capacity of 6 million tonnes petrochemicals including ethylene, propylene and ethylene glycol. (Reuters)

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