03 April 2013 04:19 [Source: ICIS news]
SINGAPORE (ICIS)--Sadara Chemical said late on Tuesday it has raised Saudi riyal (SR) 7.5bn ($2bn) from the sale of an Islamic bond, or sukuk, to finance an integrated chemicals complex at Jubail Industrial City II in Saudi Arabia.
The net proceeds from the issue of the sukuk will be used to fund the construction and delivery of the plants at its chemicals complex, the Saudi Arabian company said in a statement.
“The sukuk has received strong investor demand, resulting in 2.6 times oversubscription based on the initial offering size of SR5.25bn,” Sadara Chemical added.
The sukuk has a lifespan of 16 years, according to the company.
The first production units at the complex are expected to come on line in the second half of 2015, with all 26 production units coming on stream in 2016.
Sadara Chemical is a joint venture between state-owned oil company Saudi Aramco and US-based firm Dow Chemical.
($1 = SR3.75)
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