Corrected: Kayan to borrow $6bn for project

18 December 2006 10:24  [Source: ICIS news]

Correction: In the ICIS news story headlined “GPCA ’06: Saudi Kayan to borrow $6bn for project” dated 16 December, 2006, please read in the fourth paragraph Saudi Basic Industries Corp (SABIC) owns 35% of Saudi Kayan with Kayan holding another 20% … instead of …with private investors holding another 20%... A corrected story follows.

 

DUBAI (ICIS news)--Saudi Kayan Petrochemical Co, a subsidiary of Saudi Basic Industries Corp (SABIC), will borrow $6bn next year to partly finance the construction of its petrochemical project at Al Jubail, a senior SABIC executive said on Saturday.

 

"The debt could be either in the form of bonds or loans," Mutlaq al-Morished, SABIC's chief financial officer said on the sidelines of the first Gulf Petrochemicals and Chemicals Association (GPCA) forum.

 

"Additional funding for the project will come from equity participation through an initial public offer in the second quarter of 2007, he said.

 

SABIC owns 35% of Saudi Kayan with Kayan holding another 20%, leaving the remaining 45% available for public subscription.

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Saudi Kayan's petrochemical complex, which is due on stream in 2010, would be able to produce more than 4m tonnes/year of chemicals including aminoethanols, phenol, cumene and polycarbonate (PC), in addition to ethylene, propylene, polypropylene and monoethylene glycol. The company has obtained PC technology from Asahi Kasei Chemicals.

By: Prema Viswanathan
+65 6780 4359

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