19 May 2008 04:14 [Source: ICIS news]
DUBAI (ICIS-news)--Saudi International Petrochemical Co (Sipchem) has signed a Saudi Riyal (SR) 2.78bn ($750.6m) debt agreement to re-finance its acetyls project, the company said in statement over the weekend.
Sipchem said that Acetyls Complex Companies has signed a re-financing agreement with Saudi British Bank (SABB) as the initial mandated lead arranger.
The re-financing agreements cover the entire amount of commercial financing requirements, while additional financing sources include the Public Investment Fund and Saudi Industrial Development Fund.
HSBC acted as financial advisor for the re-financing facility.
"We are delighted to have signed this financing deal with The SABB which demonstrates the conviction all parties have in the future success of the Acetyls Companies on the world marketplace", Abdullah Al-Saadoon, president of the Acetyl Companies said.
He added that the company will work closely with HSBC and The SABB to bring in other core Sipchem banks to this important financing.
The project will include a 460,000 tonne/year acetic acid unit, a 330,000 tonne/year vinyl acetate monomer (VAM) plant and a 345,000 tonne/year carbon monoxide unit and 50,000 tonne/year acetic anhydride unit.
All three plants are expected to be operational in the first quarter of 2009.
($1 = SR3.75)
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