Jubail duo solicits banks
The local/US National ChevronPhillips Company (NCP) and the local Saudi Kayan Petrochemical Company are both due to approach the bank market in early 2007 to finance their grassroots petrochemical projects at Jubail. Initial public offerings (IPOs) are also imminent for 30 per cent of the companies' capital, as is mandatory under government rules.NCP is not appointing a financial adviser and is arranging in-house the financing of its estimated $3,000 million-4,000 million project, which has a debt requirement of $2,100 million-2,800 million.Export-Import Bank of the US (Eximbank) will extend financing and is being advised by HSBC with SABB.Samba Financial Group is advising NCP on its planned IPO, which is expected to be launched in the first quarter of 2007 depending on Capital Market Authority approval. The NCP project entails construction of a cracker and downstream units. US-based ABB Lummus Global has almost completed designs for the project (MEED 24:3:06).Costs on the Kayan project are estimated at $8,000 million and the debt/equity split is expected to be about 65/35. BNP Paribas, Gulf International Bank (GIB) and Samba are advising on the debt, while GIB alone is advising on the IPO. Tendering is under way on the complex's multiple downstream units (MEED 13:10:06).www.meed.com/bankingfinance
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