Saudi Advanced Petrochemical secures SR6.1bn funding for Jubail project
SINGAPORE (ICIS)–Advanced Petrochemical has secured about Saudi riyal (SR) 6.1bn ($1.6bn) to fund construction of a propane dehydrogenation (PDH), a polypropylene (PP) and an isopropanol (IPA) plants in Jubail, Saudi Arabia.
The PDH plant will have a propylene nameplate capacity of 843,000 tonnes/year, with the downstream PP plant’s capacity will be 800,000 tonnes/year. The IPA plant will have a 70,000 tonne/year capacity, Advanced Petrochemical said in a filing on Saudi Exchange or Tadawul on 6 July.
The company’s subsidiary Advanced Polyolefins Industry Company (APOC) has signed various Shari’ah-compliant Islamic facility agreements with a consortium of financial institutions for the project.
The funds were secured via four facilities from nine financial institutions, namely Alinma Bank, Al Rajhi Banking and Investment Corp, Arab National Bank, Arab Petroleum Investments Corp, Bank Albilad, Banque Saudi Fransi, Riyad Bank, The Saudi British Bank, and The Saudi National Bank.
The first two facilities are repayable in 22 unequal semi-annual installments from 31 May 2025 until 30 November 2035, the company said.
The bridge and VAT Murabaha facilities, meanwhile, will be payable no later than 31 May 2026.
As guarantee offered for the financing, Advanced Petrochemical provided a debt service undertaking for an amount up to $250m and a pledge of the shareholders’ shares in APOC.
The company first announced the PDH/PP complex project, which will be a joint venture with Korean SK Gas three years ago.
In late June 2019, Advanced Petrochemical had said that the project, which was slated to start up in the second half of 2024, would produce value-added PP grades to manufacture PP compounds for the automotive industry.
The company produces propylene and PP in Al Jubail, Saudi Arabia, while Its South Korean subsidiary SK Advanced produces propylene in Ulsan.
($1 = SR3.75)