Saudi Kayan signs US$6bn financing contract.

02 June 2008 08:45  [Source: ICIS news]

DUBAI (ICIS news)--Saudi Kayan Petrochemical Co has signed a US$6bn finance contract with group of banks and corporate banks to finance its mega petrochemical project in Jubail industrial city on the east coast of the Kingdom, it said over the weekend.

The 15 year loan will be provided by local and international  banks including BNP Paribas, Saudi SAMBA, ABN AMRO and Arab Banking Corp and HSBC bank,  and the European and Korean Export Credits Guarantee Agencies – ECGD, SACE, KEXIM, KEIC.

Saudi Alrajhi Bank will provide the Islamic tranche while the Saudi Investment Fund will take part of the project financing.

“Saudi Kayan is trying to diversify its financial sources to finance its projects” Murshid Almutlaq, CEO of the company said in a statement.

Saudi Kayan plans to operate a mega petrochemical complex with an annual capacity exceeding 4m tonnes of chemical products.

SABIC holds 35% of the company’s capital of Saudi Riyals (SR) 12bn ($3.2bn) and Saudi Kayan holds 20%. The remaining 45% will be offered for public subscription.

($1 = SR3.75)

By: Abdelghani Henni
65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly