Sipchem affiliates sign $560m loan for acetyls unit

25 December 2006 15:54  [Source: ICIS news]

DUBAI (ICIS news)--Saudi International Petrochemical Co’s (Sipchem) affiliates in its acetyls complex signed a $560m, or Saudi Riyal (SR) 2.1bn, project finance loan with nine regional banks on Saturday, the company said in a statement.

Abdullah Al-Saadoon, president of the acetyls complex, said that the amount of the loan would be scaled down once the Public Investment Fund (PIF) loan is signed in the future.

He indicated that Sipchem had already begun the process of converting the loans to Islamic (Ijara lease) structure in line with the company’s long term goals.

HSBC acted as financial advisor to the affiliates - International Acetyl Company (IAC), International Vinyl Acetate Monomer Company (IVAC), and United Industrial Gases Company (UIGC).

Sipchem also said that the construction of the complex at its site in Al-Jubail was progressing as scheduled.

The complex comprises of three facilities: the 460,000 tonnes/year acetic acid (AA) plant; the 330,000 tonnes/year vinyl acetate monomer (VAM) unit; and the 345,000 tonnes/year carbon monoxide (CO) facility, in addition to the utilities and offsite port facilities at King Fahd Industrial Seaport in Jubail.

Al-Saadoon said that about 45% of the engineering was completed for the CO plant, currently projected to be the largest facility of its kind in the world, and 98% of the engineering was completed for the AA and VAM plants.

The CO plant will supply primary feedstock for the production of AA and VAM, which will be produced by other two plants of the complex.

The plants are expected to be operational in the first quarter of 2009.

($1 = SR3.75)

By: Anuradha Rao
+65 6780 4359

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