17 June 2013 07:36 [Source: ICIS news]
DUBAI (ICIS)--Sadara Chemical Co has raised part of the $12.5bn (€9.4bn) required funding for its proposed petrochemical complex in Saudi Arabia, industry and banking sources said on Monday.
Full project funding is expected to be raised by September 2013, banking sources said.
“Sadara Chemical has raised Saudi riyals (SR) 7.5bn from sukuk [an Islamic bond issue] and has also secured a credit line of $4.975bn from the US Ex-Im Bank [The Export-Import Bank of the United States],” a banking source said.
The financing package for the project will further include loans from bank, and from Saudi Arabia’s state-owned Public Investment Fund, sources said.
The petrochemical complex will cost $19.3bn to build, about 35% of which will be funded through equity participation by the two partners.
When completed in 2016, the complex will produce around 3m tonnes of petrochemicals each year.
Sadara Chemical is a joint venture between Saudi Aramco and Dow Chemical.
($1 = €0.75)
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