Petrochemicals firm will use PIF loan to help finance a $10bn industrial complex.
Saudi Arabia's Public Investment Fund (PIF) has granted Kayan Petrochemical Co. a 4 billion riyals ($1.1 billion) loan to help finance an industrial complex, Kayan's chief executive said on Wednesday.
Saudi Basic Industries Corp., which owns a stake in Kayan, is helping set up the $10 billion project with Kayan in the industrial city of Jubail on the kingdom's Gulf coast.
Government-owned PIF's loan is part of the $6 billion SABIC said last year would be raised to finance the Kayan project. The rest of the financing is being arranged, CEO Mutlaq al-Morished said.
"PIF granted Kayan the 4 billion riyal loan, which will be added to $4.8 billion we are raising in Islamic and commercial loans with five banks," he told Reuters.
"We expect to complete the financing of the complex in the second half of this year," he added.
He said HSBC, French bank BNP-Paribas, ABN-Amro, Bahrain's Arab Banking Corporation and Saudi Samba bank were arranging the loan.
With an annual production capacity of more than 4 million tonnes, the complex will produce ethylene, propylene and other chemicals mainly for export to Asian nations such as China and India. It will be complete in 2009.
Kayan raised 6.75 billion riyals this month in an initial public offering and plans its shares will start trading on about June 16.