SINGAPORE (ICIS)--Saudi Arabia’s Advanced Petrochemical has secured a 5.5-year financing worth Saudi riyal (SR) 1.5bn ($400m) amid the coronavirus pandemic.
The cost-plus financing called Murabaha facility was signed between the company and financiers Riyad Bank, SAMBA Financial Group and Al Rajhi Bank, the company said in a filing to the Saudi stock exchange or Tadawul on 12 July.
The Islamic facility will be used “to finance the growth projects” of the company and its subsidiary.
Advanced Petrochemical produces propylene and polypropylene (PP) in Al Jubail, Saudi Arabia. Its South Korean subsidiary SK Advanced produces propylene in Ulsan.
The facility, whose utilisation will be based on actual drawdowns with financing requirements, will be in effect until end-December 2025.
($1 = SR3.75)
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