Saudi Arabia and Pakistan sign $100m urea loan agreement

08 February 2011 11:21  [Source: ICIS news]

LONDON (ICIS)--Saudi Arabia has agreed to loan the government of Pakistan $100m (€74m) to finance the purchase of Saudi urea, a company source at Saudi producer SABIC said on Tuesday.

The exact quantity purchased will depend on prevailing market prices, but the loan is expected to cover around 250,000 tonnes to 300,000 tonnes of urea.

SABIC expects to ship its first cargo to Trading Corporation of Pakistan (TCP) at the end of February or early March.

A similar agreement between the two governments was signed at the end of 2009.

Due to this latest commitment and existing contracts, SABIC expects to have minimal spot availability over the coming months.

($1 = €0.74)

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By: Carl Roache
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