UpdateSadara Chem to raise $12.5bn funding for Saudi chem project

17 June 2013 12:07  [Source: ICIS news]

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DUBAI (ICIS)--Sadara Chemical Co has raised part of the $12.5bn (€9.4bn) funding requirement for its proposed petrochemical complex in Saudi Arabia, the company said on Monday.

“The company [Sadara] expects total amount of funding for the project to be about SR46.88bn ($12.5bn) and it expects financial closure for core funding and its first draw during the third quarter of 2013,” Sadara said in a statement to the Saudi Stock Exchange.

“The company has signed bank facilities with commercial banks in Saudi Arabia and foreign banks; Export Development Canada and the Islamic Development Bank and agencies, export credit and the Public Investment Fund, Saudi Arabia, valued at [Saudi riyals (SR)] 39.375bn,” it said.

“The company has also decided to obtain additional funding to cover project costs,” it added. 

Sadara said it had raised SR7.5bn from sukuk – an Islamic bond issue – having increased the deal size from SR5.25bn riyals on strong demand from investors.

The petrochemical complex will cost $19.3bn to build, about 35% of which will be funded through equity participation by joint venture partners – Saudi Aramco and Dow Chemical.

No further break-up of the financing facility with various lenders were provided.

However, banking sources said Sadara has also secured a credit line of $4.975bn from US Export-Import Bank. 

When completed in 2016, the complex will produce around 3m tonnes of petrochemicals each year.

($1 = €0.75 / $1 = SR3.75)

By: Aamir Ashraf

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