IMC refinances riyal 535m loan on Islamic terms

11 December 2006 16:08  [Source: ICIS news]

DUBAI (ICIS news)--International Methanol Co (IMC) signed final agreements to re-finance its existing commercial loan of Saudi riyal (SR) 535m ($143m/€108m) on the basis of an Islamic Ijara lease structure over the weekend.

The agreements were signed with Saudi British Bank, Saudi Fransi Bank, and Riyad Bank, Saudi International Petrochemical Co (Sipchem) said in a statement on Sunday.

IMC is a joint venture between Sipchem and Japan-Arabia Methanol Co (JAMC).

Sipchem president, Ahmad Al-Ohali, said that the deal was in line with the company’s long term goal of financing its projects Islamically to the extent possible.

IMC was established in 2002 to produce 1m tonnes/year of methanol at its world-scale plant located in Jubail, Saudi Arabia.

Methanol is used in manufacturing a wide variety of chemical products, such as formaldehyde and acetic acid.

($1 = riyal 3.75)

By: Anuradha Rao
+65 6780 4359

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