SABIC affiliate signs SR1.5bn loan for expansions

23 April 2007 06:12  [Source: ICIS news]

SINGAPORE (ICIS news)--National Industrial Gases Co (GAS) has signed a Saudi riyal (SR) 1.5bn ($400m) murabaha loan facility to finance part of its existing expansion project, Saudi Basic Industrial Corp (SABIC) said over the weekend.

The SABIC affiliate’s loan agreement was signed by a group of eight local and Gulf banks.

Murabaha is an Islamic-law compliant sale of goods at a price, which includes a profit margin agreed to by both the buyer and the seller.

The agreement was signed by parties including Ibrahim Al-Shuweir, GAS chairman and SABIC’s vice president of corporate control, Banque Saudi Fransi and Riyad Bank, said SABIC.

The other banks are National Commercial Bank, SAMBA Financial Group, Arab Petroleum Investments Corp (APICORP), Saudi Hollandi Bank, Arab National Bank and Gulf International Bank. 

GAS has mandated Banque Saudi Fransi as financial advisor and lead arranger.

The new GAS expansion projects are currently undergoing implementation at its complexes in Jubail and Yanbu Industrial Cities.

These expansion projects will bring the total daily production capacity of oxygen to around 19,000 tonnes and the total daily production of nitrogen to around 9,750 tonnes.

($1 = SR3.75)

By: Jeanne Lim
+65 6780 4359

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